Patterson Companies ($PDCO) is said to be looking to shed its rehabilitation supply business in a deal that could reap the Minnesota-based medical device supplier up to $600 million, Reuters reported.
Citing unnamed sources close to the matter, the news agency said Patterson hired Bank of America to help with any possible sale of the unit, called Patterson Medical. Both the company and the bank declined to comment.
The rehab unit, which was formerly called Ability One when it was purchased in 2003 from the private equity arm of JPMorgan Chase, has a market cap near $5 billion. The unit, based in Illinois, makes dental products, veterinary supplies and rehabilitation supplies. It accounted for 12% of Patterson's annual revenue in fiscal 2014, bringing in net sales of $478 million.
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| Patterson CEO Scott Anderson |
In a recent earnings call, Patterson CEO Scott Anderson told analysts the company continued to "evaluate the strategic fit of Patterson Medical inside our portfolio."
Patterson Medical's veterinary division has grown since 2013, when it acquired National Veterinary Services, the United Kingdom's largest veterinary distributor. The company has been transitioning away from distributing products from IDEXX Laboratories ($IDXX), which switched last year to a direct-sales model.
- check out the Reuters story