Patterson Companies Inc has announced a definitive agreement to sell Patterson Medical, its medical business, to Madison Dearborn Parners (MDP). A news release issued by Patterson Companies Inc and MDP reports that MDP is a private equity firm based in Chicago.
The release states that the sale is expected to close in the fiscal second quarter, following the satisfaction of regulatory requirements and other customary closing conditions.
Scott P. Anderson, chairman and CEO, Patterson Companies, explains in the release that the company’s “strategy for growth is to focus our resources and investments on building our dental and animal health businesses. We believe that the medical business will thrive under the new ownership that is dedicated to driving growth in the rehabilitation market.”
Anderson adds that Patterson Companies is enthusiastic about MDP’s commitment to supporting Patterson Medical’s customers and employees going forward.
The release notes that earlier this year, Patterson Companies announced that it had retained BofA Merrill Lynch to explore the potential sale of the medical business. The recent announcement finds its roots in the outcome of that process.
Anderson goes on to call the acquisition of Animal Health International and divestiture of Patterson Medical “transformative moves” for Patterson Companies, and a vital component of its strategic intent to take a broadened view of its markets.
Tim Sullivan, a managing director at MDP, emphasizes the company’s excitement in partnering with the management team at Patterson Medical.
“MDP has extensive experience investing in healthcare distribution companies and corporate carve-outs, and we plan to use our resources and expertise to support Patterson Medical’s US and international growth. Patterson Medical is a leader in its field with strong competitive advantages, and we look forward to supporting the team as they execute the next stage of the company’s growth,” Sullivan adds.
Patterson Medical’s current management team is led by its president Mike Orscheln, and will work closely with the MDP team to implement the growth opportunities it will have under its new independent ownership structure, the release states. Upon the sale’s completion, the business will continue to operate as Patterson Medical for a transition period before rebranding as part of its independence from Patterson Companies.
Additionally, the release notes that Patterson Companies has announced beginning with the fiscal 2016 first quarter, the results of Patterson Medical will be classified and reported as discontinued operations.
[Source(s): Patterson Companies Inc, Madison Dearborn Partners, BusinessWire]