Patterson Dental, one of the nation’s largest dental distributors and a unit of Patterson Companies, Inc., today announced the acquisition of Iowa Dental Supply, LLC , a full service dental distributor in Des Moines, IA.
"Iowa Dental seems to have a good reputation and appears to be well run, so we’d expect a smooth transition to PDCO," said Jeff Johnson, Senior Research Analyst with R.W. Baird. "The deal highlights, however, how little is left for the large North American distributors – both HSIC and PDCO – to acquire at this point, as Iowa Dental will add only about one half of one percent to PDCO’s dental revenues and less than 40 basis points to company-wide revenue over the next 12 months."
Iowa Dental Supply serves dental practices in Iowa, Nebraska, South Dakota, Missouri and Illinois. Terms of the all-cash transaction were not disclosed. IDS is expected to be modestly accretive to Patterson Dental’s profitability in Patterson’s current fiscal 2013 year.
IDS, with sales of approximately $13 million in calendar 2011, has a long established and highly regarded reputation. The business serves its customers through a sales force consisting of 11 field sales representatives and equipment specialists. Integrating IDS into Patterson Dental is expected to proceed quickly.
Paul A. Guggenheim, Patterson Dental’s president, said, “We are excited to have Iowa Dental join the Patterson Dental organization. IDS will strengthen the competitive position of Patterson Dental in several of our midwestern markets. This is an extremely well-managed business, and Rick Cacciatore, president of IDS, will become Patterson Dental’s North Central Region Manager, replacing the retiring Rich Kochmann.”
