Covetrus to sell diagnostics subsidiary to Heska for $125 millionJanuary 16, 2020Covetrus is divesting itself of its Scil Animal Care business to Heska Corp. in an all-cash deal worth US$125 million. Subject to customary closing conditions, the transaction is expected to close in the next 60 to 90 days. Headquartered in Germany, Scil is a veterinary diagnostics company that distributes in 24 countries. The agreement also includes a commercial relationship between Covetrus and Heska tied to ongoing logistics support for the latter's family of diagnostic products, as well as connectivity between the Covetrus Global Technology Solutions practice information management software systems (PIMS) and Heska's laboratory and imaging solutions. Covetrus says the net cash proceeds from the sale will go toward paying down debt. In addition, the proceeds may also be used for other general corporate purposes. "While we are still in the early stages of executing on our strategy, this transaction is an important initial step in that process," says Ben Wolin, Covetrus' acting president and chief executive officer. In related company news, Covetrus also announced it was combining its Spain and Portugal businesses with Distrivet, a provider of veterinary products and services in Spain. As a result, Covetrus will own 50.01 percent of Distrivet. The deal is expected to close …
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Zoetis to buy Abaxis for $1.9 billionMay 16, 2018In an effort to gain a greater foothold in the veterinary diagnostics category, Zoetis veterinary drug corporation will acquire Abaxis diagnostic equipment manufacturer in a $1.9 billion deal, which was announced Wednesday. The acquisition is expected to close before the end of the year. According to MarketsandMarkets research firm, the worldwide veterinary diagnostics market is expected grow from $2.3 billion in 2017 to $3.6 billion in 2022. Zoetis, whose diagnostics business accounts for less than 1 percent of its overall annual revenue of $5.3 billion for 2017, seeks to leverage that expanding category. In a statement, the company reported it expects the sector to "continue to grow faster than the animal health industry, with growth in the mid to high single digits, driven by international adoption of point-of-care diagnostic instruments due to rising medicalization rates, increasing standard of veterinary care, and the convenience of in-clinic testing." Abaxis, headquartered in Union City, Calif., reported revenue of $227 million in 2017. The company manufactures chemistry and hematology diagnostic instruments and consumable discs, kits, and cartridges for the animal health industry. It recently launched its VetScan FLEX4 Rapid Test to detect heartworm, Lyme, Ehrlichia, and Anaplasma …
