SOURCE: MWI Veterinary Supply

June 08, 2007 12:00 ET

MWI Acquires Assets of Securos, Inc. and International Veterinary Distribution Network, Inc.

MERIDIAN, ID--(Marketwire - June 8, 2007) - MWI Veterinary Supply, Inc. (NASDAQ: MWIV) announced today that it has completed the purchase of substantially all of the assets of Securos, Inc. and International Veterinary Distribution Network, Inc. (IVDN) for approximately $5.0 million, including approximately $4.5 million in cash and 13,058 shares of restricted common stock. Additional cash incentives will be paid if certain performance milestones are achieved.

Based in Charlton, MA, Securos is a leading provider of veterinary orthopedic products in the US and select countries abroad. Also based in Charlton, MA, IVDN sources private label products in the categories of veterinary surgical consumables and equipment and handheld instruments. The two companies, which were owned by brothers Harry and Darroll Wotton, had approximately $3.8 million in combined revenues for the year ended December 31, 2006. Approximately 90% of these sales are from Securos, and approximately 10% are from IVDN. The asset purchases are expected to be neutral to MWI's fiscal 2007 earnings.

These acquisitions are the first by MWI's new division, Specialty Resources Group, whose objective is to increase and diversify profits through the acquisition and development of niche and specialty animal health products and services. "We are excited by the added value that Securos brings to veterinary orthopedics through new products, techniques and training," shares MWI President and Chief Executive Officer Jim Cleary. "Our Specialty Resources Group looks forward to supporting Securos's team in the veterinary channel in both the US and abroad."

Securos recently celebrated its 10th anniversary and is built on products dedicated to veterinary orthopedics, including 5 patents and 3 pending patents. IVDN has a three year history of sourcing high quality veterinary surgical consumables and equipment and handheld instruments directly from manufacturers around the world. "We are proud of what we've accomplished to date at Securos and IVDN but also know that being a part of Specialty Resources Group will enable us to take veterinary orthopedics to the next level -- better and faster," commented Harry Wotton, III, the founder of Securos.

MWI is a distributor of animal health products to veterinarians across the United States of America. Products MWI sells include pharmaceuticals, vaccines, parasiticides, diagnostics, capital equipment, supplies, veterinary pet food and nutritional products. We market these products to veterinarians in both the companion animal and production animal markets. 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 and Chief Financial Officer at (208) 955-8930 or email investorrelations@mwivet.com.

Certain statements contained herein that are not descriptions of historical facts are "forward-looking" statements (as such term is defined in the Private Securities Litigation Reform Act of 1995). Because such statements include risks and uncertainties, actual results may differ materially from those expressed or implied by such forward-looking statements. Factors that could cause results to differ materially from those expressed or implied by such forward-looking statements include, but are not limited to, those discussed in filings made by the Company with the Securities and Exchange Commission. Many of the factors that will determine the Company's future results are beyond the ability of management to control or predict. Readers should not place undue reliance on forward-looking statements, which reflect management's views only as of the date hereof. The Company undertakes no obligation to revise or update any forward-looking statements, or to make any other forward-looking statements, whether as a result of new information, future events or otherwise. Important assumptions and other important factors that could cause actual results to differ materially from those set forth in the forward-looking information include vendor rebates based upon attaining certain growth goals; changes in the way vendors introduce products to market; the recall of a significant product by one of the Company's vendors; seasonality; the impact of general economic trends on the Company's business; the timing and effectiveness of marketing programs offered by the Company's vendors; the timing of the introduction of new products and services by the Company's vendors; regulatory matters; and competition. These other factors include changes in the rate of inflation; changes in state or federal legislation or regulation; the continued safety of the products the Company sells; and changes in the general economy.

Contact Information

  • Contact:
    Mary Pat Thompson
    Senior Vice President and Chief Financial Officer
    (208) 955-8930
    Email Contact