Strategic Expansion in the California Market
ST. PAUL, Minn., March 27 /PRNewswire/ -- Patterson Dental Company
(Nasdaq: PDCO) today announced it has acquired Guggenheim Bros. Dental Supply
Co., a full-service dental products distributor with 1999 sales of
$20 million. The acquisition significantly increases Patterson's market share
and coverage in California, and continues the company's use of key strategic
acquisitions to expand operations. Terms of the transaction were not
disclosed.
Based in Hawthorne, Calif., a west Los Angeles suburb, Guggenheim, an
87-year old dental supply company with more than 5,000 accounts, has sales
operations in San Diego, San Francisco and Las Vegas, in addition to its
principal location in Hawthorne. Patterson will establish the Hawthorne
operation as its new west-L.A. branch complimenting its existing east-L.A.
branch in San Dimas. The combined operations of the two L.A. branches will
nearly double Patterson's sales in this market. The other Guggenheim
operations will be integrated into existing Patterson branches in their
respective markets.
Guggenheim brings 30 sales representatives to the Patterson organization.
Its president and owner, Paul Guggenheim, will become the Southwest Region
Manager for Patterson.
"We are extremely pleased that Paul and his organization are joining
Patterson. With Guggenheim we are adding a strong, established distributor in
California -- one of the country's largest dental markets," said Peter
Frechette, president and chief executive officer. "Its operating philosophy
mirrors Patterson's value added, full-service marketing approach. This will
facilitate a smooth transition for Guggenheim's customers and people. We will
continue to capitalize on the consolidating dental supply industry by making
value-added acquisitions that expand our geographic coverage, customer base
and sales network."
Patterson Dental Company is one of the largest distributors of dental
products in North America. The company supplies more than 82,500 products to
dentists, dental laboratories, institutions, physicians and other healthcare
providers. These products include x-ray film, impression and restorative
materials, hand instruments, sterilization products, front office forms and
stationery as well as capital equipment. Patterson markets its products and
services through more than 1,000 sales representatives and equipment
specialists in the United States and Canada.
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
supply industry; changes in the economics of dentistry, including reduced
growth in expenditures by private dental insurance plans and the effects of
healthcare reform, which may affect future per capita expenditures for dental
services and the ability of dentists to invest in or obtain reimbursement for
the use of high technology products; the ability of the company to maintain
satisfactory relationships with its sales force; the effects of economic
conditions; unforeseen operating risks; risks associated with the dependence
on manufacturers of the company's products; the ability of the company and its
suppliers of products and services to upgrade their computer systems to
address year 2000 issues; and the availability of capital to finance planned
growth. Forward-looking statements are qualified in their entirety by
cautionary language set forth in the company's Annual Report on Form 10-K
filed July 19, 1999, and other documents filed with the Securities and
Exchange Commission.
For further information on Patterson Dental free of charge via fax,
dial 1-800-PRO-INFO and enter the number 207.
SOURCE Patterson Dental Company
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CONTACT: R. Stephen Armstrong, Executive Vice President & CFO of Patterson Dental Company, 651-686-1600, or General Information, Leslie Hunziker, 312-640-6760, or Analyst Inquiries, Leslie Loyet, 312-640-6672, both of The Financial Relations Board
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