Exhibit 99.2
FOR: Henry Schein, Inc.
CONTACT: Steven Paladino
Executive Vice
President and Chief
Financial Officer
stepal@henryschein.com
(631) 843-5500
Susan Vassallo
Director, Public Relations
svassa@henryschein.com
FOR IMMEDIATE RELEASE (631) 843-5562
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HENRY SCHEIN ACQUISITION OF THE DEMEDIS GROUP
CLEARED TO CLOSE
MELVILLE, N.Y. - JUNE 16, 2004 - Henry Schein, Inc. (Nasdaq NM: HSIC), the
largest provider of healthcare products and services to office-based
practitioners in the combined North American and European markets, today
announced that regulatory authorities in Germany have cleared the Company's
acquisition of demedis GmbH and Euro Dental Holding GmbH ("the demedis Group"),
which includes DentalMV GmbH ("Muller & Weygandt") and KRUGG S.p.A. Henry Schein
expects this transaction to close by next week. As part of the Company's
agreement with the German regulatory authorities, Henry Schein has committed to
divest Muller & Weygandt, a direct marketing distributor of consumable dental
supplies with net sales of approximately EUR 70 million for the fiscal year
ended September 30, 2003. The divestiture is expected to be completed shortly
after closing.
Henry Schein is now positioned to complete the acquisition of demedis
GmbH, the leading full-service distributors of dental consumables and equipment
in Germany and the Benelux countries, which will further Henry Schein's strategy
to be a full-service, high-value provider of products and services to European
dentists. In addition, Henry Schein is in position to complete the acquisition
of KRUGG, Italy's leading distributor of dental consumable products, which will
provide Henry Schein entree into Europe's second largest dental market and
further its Pan-European strategy. For the fiscal year ended September 30, 2003,
the demedis and KRUGG businesses had aggregate sales of over EUR 285 million.
Henry Schein noted that this transaction has been previously approved
by regulatory authorities in Italy, and did not require regulatory approval in
the Benelux countries. The Company also commented that review by the Austrian
regulatory authorities continues. Demedis GmbH in Austria operates under the
Austrodent brand.
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"It is rare to identify such a sizeable, excellent opportunity as the
demedis full-service dental distribution businesses in Germany and the Benelux
countries. The demedis full-service businesses in these countries complements
Henry Schein's full-service dental consumables and equipment businesses in
Europe and North America. The KRUGG direct marketing dental and veterinary
business in Italy is of strategic importance as it enables Henry Schein to enter
this key market. We are delighted to be nearing the closing of this important
strategic acquisition," said Stanley M. Bergman, Chairman, Chief Executive
Officer and President of Henry Schein.
"As reported when we first announced this transaction, we plan to
continue to conduct business in Europe under the acquired companies' various
brands, and to retain the demedis and KRUGG management teams under the
leadership of Michael Zack, Senior Vice President of Henry Schein's
International Group," added Mr. Bergman.
The Company also noted that Norbert Orth who has served as Chief
Executive Officer of the demedis Group since 2000, will continue to be
responsible for the demedis Group operations in Germany, Austria, Italy, and the
Benelux countries, and will assume responsibility for existing Henry Schein
operations in Germany and Austria, as well as in Eastern Europe. Robert
Minowitz, who currently manages Henry Schein's European business, will continue
to be responsible for Henry Schein's existing operations in the United Kingdom,
Ireland, France, Spain, Portugal and the Benelux countries.
Mr. Bergman concluded, "We very much look forward to the future
benefits this new transaction will bring for Henry Schein, including strong
operating income growth, and for our customers who will enjoy the same high
levels of service and product selection to which they have become accustomed. In
addition, our existing and new customers will benefit from the combination of
expertise and industry knowledge of the demedis Group and Henry Schein."
2004 EPS GUIDANCE
Based on these developments, the Company expects full-year 2004
earnings per diluted share of $3.55 to $3.61. This represents growth of 15% to
17% compared with 2003 results from continuing operations on a comparable basis.
The Company noted that this 2004 EPS guidance is for current operations,
including the acquisitions of demedis and KRUGG, and does not include the impact
of other potential future acquisitions.
ABOUT DEMEDIS AND KRUGG
Based in Langen, Germany, located outside Frankfurt, demedis and its
Italian affiliate, KRUGG, based in Milan, Italy, serve more than 75,000
customers through over 1,200 employees, including regional field sales
consultants, telesales representatives and equipment service technicians. This
acquisition will enhance Henry Schein's current European sales force, and
significantly add to its existing International customer base of over 170,000.
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ABOUT HENRY SCHEIN
Henry Schein, Inc., a Fortune 500(R) company, is the largest
distributor of healthcare products and services to office-based practitioners in
the combined North American and European markets. Recognized for its excellent
customer service and highly competitive prices, the Company's four business
groups - Dental, Medical, International and Technology - serve more than 425,000
customers worldwide, including dental practices and laboratories, physician
practices and veterinary clinics, and government and other institutions.
The Company's sales reached a record $3.4 billion in 2003. With a
presence in 14 countries, Henry Schein's International Group posted record sales
of $577 million in 2003, up 32% in U.S. dollars and up 13% in local currencies
compared with 2002.
The Company operates through a centralized and automated distribution
network that serves customers in more than 125 countries. The Company offers a
comprehensive selection of over 90,000 national and Henry Schein private-brand
products.
Henry Schein also offers a wide range of innovative value-added
practice solutions, including such leading practice management software systems
as DENTRIX(R) and Easy Dental(R) for dental practices, and AVImark(R) for
veterinary clinics, which have been installed in over 50,000 practices; and
ArubA(R), Henry Schein's electronic catalog and ordering system.
Headquartered in Melville, N.Y., Henry Schein employs nearly 8,000
people in 16 countries. For more information, visit the Henry Schein Web site at
www.henryschein.com.
Certain information contained herein includes information that is
forward-looking. The matters referred to in forward-looking statements may be
affected by the risks and uncertainties involved in the Company's business.
These forward-looking statements are qualified in their entirety by the
cautionary statements contained in the Company's Securities and Exchange
Commission filings.
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