Patterson Companies Expands Strategic Direction for Veterinary Business

  Patterson Companies Expands Strategic Direction for Veterinary Business

   Acquires National Veterinary Services, Largest Veterinary Distributor in
                                United Kingdom

Business Wire

ST. PAUL, Minn. -- July 10, 2013

Patterson Companies, Inc. (Nasdaq: PDCO) today announced another step in the
company’s strategic vision for its veterinary business. Patterson Companies
has agreed to acquire the stock of National Veterinary Services Limited (NVS),
a wholly owned subsidiary of Dechra Pharmaceuticals PLC (Dechra) (DPH.L). NVS
is the largest veterinary distributor in the United Kingdom providing an array
of products and services, including reference laboratory offerings.

Patterson is focused on building its value-added model in the veterinary
market by increasing the company’s service offerings, as well as its equipment
and technical service strategy, to capture market share as veterinarians
expand their practice capabilities to meet heightened pet owner expectations.
In line with this overall strategy, the company believes NVS provides an
exceptional platform to extend Patterson’s strategies into additional
geographic markets.

The Patterson Companies and the Dechra Boards of Directors have unanimously
approved a definitive agreement, under which Patterson Companies will acquire
all of the outstanding shares of NVS for £87.5 million (approximately US $135
million) in cash. The transaction is subject to approval by Dechra
shareholders with a closing date currently scheduled in August 2013. NVS had
revenues of more than £315 million for its year ended June 30, 2013. In
Patterson’s first full year after closing, the acquisition is expected to be
accretive to earnings by $0.04 to $0.05 per share, including the impact of
one-time and transactional expenses.

"This agreement reflects our commitment to Patterson Veterinary’s strategic
direction. Through this acquisition, we are able to expand Patterson
Veterinary internationally, providing our industry-leading service to a new
market,” said Scott P. Anderson, chairman and chief executive officer of
Patterson Companies. "Over the past several years, we have seen the strength
of Patterson’s platform and global network continue to grow. With this
acquisition, we will further extend our footprint and increase shareholder
value."

George Henriques, president of Patterson Veterinary, commented, "We are
excited to have NVS and the Labs Business join the Patterson group , and are
enthused by this unique opportunity to create a powerful global franchise with
best-in-class client service in the veterinary market. We see strong growth
opportunities as consumers continue to increase the amount they spend on their
pets. There are numerous benefits to this transaction, including NVS’s
long-standing relationships in the U.K. and other markets, their cutting edge
customer-facing technology, operational efficiencies and strong operating cash
flows.”

NVS will operate as a stand-alone subsidiary of Patterson Companies with
Martin Riley serving as managing director. Riley has been managing director of
NVS for eight years and has outstanding credentials in the industry. He and
the staff at NVS will report administratively to Henriques with limited
integration of systems in the near-term, as Patterson continues its previously
announced internal systems transformation.

“We look forward to bringing new innovative and exciting benefits to our
customers, adding to our technology platform and expertise to give us
market-leading competitive advantage,” said Riley. “The Patterson brand will
enhance our already solid reputation and bring new opportunities to our
business.”

About Patterson Companies, Inc.:
Patterson Companies, Inc. is a value-added distributor serving the dental,
companion-pet veterinarian and rehabilitation supply markets.
Dental Market
As Patterson’s largest business, Patterson Dental provides a virtually
complete range of consumable dental products, equipment and software, turnkey
digital solutions and value-added services to dentists and dental laboratories
throughout North America.
Veterinary Market
Patterson Veterinary is a leading distributor of consumable veterinary
supplies, equipment and software, diagnostic products, vaccines and
pharmaceuticals to companion-pet veterinary clinics.
Rehabilitation Market
Patterson Medical is the world’s leading distributor of rehabilitation
supplies and non-wheelchair assistive patient products to the physical and
occupational therapy markets. The unit’s global customer base includes
hospitals, long-term care facilities, clinics and dealers.

About Dechra Pharmaceuticals PLC:
Dechra is an international veterinary pharmaceutical business. Its expertise
is in the development, manufacturing, distribution, sales and marketing of
high quality products exclusively for veterinarians worldwide. Dechra’s
business is unique as the majority of its products are used to treat medical
conditions for which there is no other effective solution or have a clinical
or dosing advantage over competitor products.

Forward-Looking Statements:
This release contains forward-looking statements as defined in the Private
Securities Litigation Reform Act of 1995. Forward-looking statements are
information of a non-historical nature and are subject to risks and
uncertainties that are beyond the Company's ability to control. The Company
cautions shareholders and prospective investors that the following factors,
among others, may cause actual results to differ materially from those
indicated by the forward-looking statements: competition within the dental,
veterinary, and rehabilitative and assistive living supply industries; changes
in the economics of dentistry, including reduced growth in expenditures by
private dental insurance plans, the effects of economic conditions and the
effects of healthcare reform, which may affect future per capita expenditures
for dental services and the ability and willingness of dentists to invest in
high-technology products; the effects of healthcare related legislation and
regulation which may affect expenditures or reimbursements for rehabilitative
and assistive products; changes in the economics of the veterinary supply
market, including reduced growth in per capita expenditures for veterinary
services and reduced growth in the number of households owning pets; the
ability of the Company to maintain satisfactory relationships with its sales
force; unexpected loss of key senior management personnel; unforeseen
operating risks; risks associated with the dependence on manufacturers of the
Company's products; and the ability of the Company to successfully integrate
the recent acquisitions into its existing business. Forward-looking statements
are qualified in their entirety by the cautionary language set forth in the
Company's filings with the Securities and Exchange Commission.

Contact:

Patterson Companies, Inc.
Ann B. Gugino, 651-686-1600
Vice President, Planning & Strategy
or
R. Stephen Armstrong, 651-686-1600
Executive Vice President & CFO
 
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