SOURCE: MWI Veterinary Supply, Inc.

June 25, 2008 09:00 ET

MWI Enters Into Letter of Intent to Purchase AAHA MARKETLink, and a Long-Term Sponsorship and Licensing Agreement With American Animal Hospital Association

MERIDIAN, ID--(Marketwire - June 25, 2008) - MWI Veterinary Supply, Inc. ("MWI" or "the Company") (NASDAQ: MWIV) announced today that it has entered into a non-binding letter of intent to purchase substantially all of the assets of AAHA Services Corporation, operating as AAHA MARKETLink, for a cash purchase price of $10 million, and to simultaneously enter into a long-term sponsorship and licensing agreement between MWI and American Animal Hospital Association ("AAHA"). The Company currently expects to commence logistics on behalf of AAHA MARKETLink on July 1, 2008 and to enter into a definitive agreement and close the transaction by July 15, 2008. The proposed acquisition is subject to the negotiation and execution of a definitive asset purchase agreement containing terms and conditions customary for a transaction of this nature.

Based in Lakewood, Colorado, AAHA MARKETLink has twelve years of history selling animal health products to veterinary practices that are members of AAHA. AAHA MARKETLink had total revenues of approximately $40 million for its fiscal year ended June 30, 2007.

Jim Cleary, President and Chief Executive Officer of MWI, commented: "The American Animal Hospital Association is a very important organization that provides valuable services and information to the veterinary profession. We are excited about our relationship with AAHA, our acquisition of AAHA MARKETLink, and providing AAHA members with a high-level of customer service from MWI's thirteen distribution centers and over 300 MWI sales representatives."

John Albers, DVM, AAHA Executive Director, commented: "We are very pleased to be entering into this relationship with MWI, and believe that all AAHA members will benefit from the enhanced quality of services that will result."

The American Animal Hospital Association is a professional association of over 6,000 veterinary practices in the U.S. AAHA accredits veterinary practices that demonstrate compliance with AAHA Standards, and is a leader in education and practice management services.

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 of Finance and Administration 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 vendor contract terms including rebates, commissions, and exclusivity requirements; 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. 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. Investors should also be aware that while we do, from time to time, communicate with securities analysts, it is against our policy to disclose any material non-public information or other confidential commercial information. Accordingly, stockholders should not assume that we agree with any statement or report issued by any analyst irrespective of the content of the statement or report. Furthermore, we have a policy against issuing or confirming financial forecasts or projections issued by others. Thus, to the extent that reports issued by securities analysts contain any projections, forecasts or opinions, such reports are not the responsibility of MWI Veterinary Supply, Inc.

Contact Information

  • For investor relations information please contact:

    Mary Pat Thompson
    Senior Vice President of Finance and Administration and Chief Financial
    Officer
    (208) 955-8930
    Email Contact