BOISE, ID -- (Marketwired) -- 08/29/13 -- MWI Veterinary Supply, Inc. ("MWI" or "the Company") (NASDAQ: MWIV) announced today that it has entered into a definitive agreement to acquire substantially all of the assets of IVESCO Holdings LLC ("IVESCO") for an enterprise value of $67.5 million. The transaction is subject to regulatory approval and certain other customary closing conditions and is expected to close in MWI's first fiscal quarter of 2014, which ends December 31, 2013. MWI expects the annual revenues from IVESCO to be approximately $400 million during the first 12 months of ownership. The transaction is expected to be slightly accretive to MWI in the fiscal year ending September 30, 2014 after giving effect to acquisition-related expenses and integration costs.
During the fourth quarter ending September 30, 2013 MWI expects to incur acquisition-related expenses of approximately $1.2 million, the effect of which was not included in the diluted earnings per share guidance provided on July 29, 2013.
Founded in 1945, IVESCO is a leading value-added distributor of animal health products in the United States. IVESCO services mixed animal practice veterinarians, food animal producers and dealers. Headquartered in Springdale, Arkansas, IVESCO has a broad selection of inventoried products that include more than 25,000 discrete offerings sourced from over 500 manufacturers and serves over 6,000 active customers across its five business units (mixed animal practice veterinarians, swine integrators, dealers, poultry integrators and cattle).
Jim Cleary, MWI President and Chief Executive Officer, commented, "The addition of IVESCO's assets is an important step in our growth as a company. Because the need for quality protein will increase substantially in a rapidly growing world, we are particularly excited about IVESCO's complementary strength in production animal products and services. The combination also offers our customers and vendors a range of value-added services and supply chain technologies without parallel in our industry. We look forward to welcoming IVESCO's team members and customers to MWI." Cleary concluded, "MWI has agreed to acquire this business at a small premium over net tangible assets."
Robert DiMarzo, Executive Chairman of IVESCO, observed that, "Adding IVESCO's complementary strengths to MWI will solidify MWI's position as a leading full-service animal health products distributor. The increased economies of scale resulting from MWI's enhanced strength mean greater value and efficiency for both companion and production animal customers."
In connection with this transaction, IVESCO is being represented by Piper Jaffray & Co. and Pepper Hamilton LLP. MWI is being represented by Dechert LLP.
MWI is a leading distributor of animal health products across the United States of America and United Kingdom. MWI sells both companion animal and production animal products including pharmaceuticals, vaccines, parasiticides, diagnostics, micro feed ingredients, supplies, pet food, capital equipment and nutritional products. MWI also is a leading innovator and provider of value-added services and technologies used by veterinarians and producers. For more information about MWI, please visit our website at www.mwivet.com. For investor relations information please contact Mary Pat Thompson, Senior Vice President of Finance and Administration, and Chief Financial Officer at (208) 955-8930 or email firstname.lastname@example.org.
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