Patterson Companies

Patterson Companies, Inc.

Formerly	Patterson Dental Company
Company type	Public
Traded as	Nasdaq: PDCO S&P 600 component
Industry	Dental equipment Veterinary pharmaceuticals
Founded	1877; 147 years ago (1877) (Patterson Dental) in Milwaukee, Wisconsin
Founders	John G. Patterson M.F. Patterson
Headquarters	Mendota Heights, Minnesota, U.S.
Key people	John D. Buck (chairman) Don Zurbay (president & CEO)
Revenue	$3.237 bil FY'104.6%[1]
Net income	$212.254 mil FY'106.3%[1]
Total assets	$2,447.952 mil July'101%[2]
Total equity	$1,485.881 mil July'10 1%[2]
Number of employees	c. 7,600 (April 28, 2023)
Divisions	18 sub, 3 div Patterson Dental Supply, Inc. Patterson Veterinary Supply, Inc. Animal Health International
Website	pattersoncompanies.com

Patterson Companies, Inc. provides products, technologies, services and business solutions^{[clarification needed]} to oral and animal health customers in North America and the U.K. The company was established in 1877 as a dental company. It entered the animal health industry in 2001 with its acquisition of Webster Veterinary (now Patterson Veterinary) and expanded with its 2015 acquisition of Animal Health International, Inc.

In 2008, it was noted as having one of the lowest debt ratios among companies in the health care sector.^[3] Patterson was also a member of the Nasdaq-100 until December 10, 2010 when it and six other companies were replaced. The Nasdaq-100 is composed of the 100 largest non financial stocks traded on the Nasdaq.^[4]

On June 17, 2010, Patterson Medical purchased the rehabilitation part of Ireland-based DCC Healthcare (Days Healthcare, Physiomed and Ausmedic) in a move that increased Patterson Medical's revenue by 16.43% (US$70 million, fiscal year ended April 24, 2010). The new companies were added to its Homecraft Rolyan unit in the UK.^[5]

History

The company traces its roots through division Patterson Dental Supply back to one established in 1878 named Patterson Dental Company. It remained focused solely on the dental products market until the 21st century when it branched out into the veterinary supplies market through 2 large acquisitions, JA Webster in 2001 (92.5 million dollars)^[6] and ProVet in 2004. For about 130 years it dealt only in dental supplies.^[7][8] It began selling rehabilitation supplies in 2004 after acquiring Ability One Products Corporation followed by Medco the same year.^[9]

It went public on the Nasdaq in 1992 with an IPO of around 480 million dollars.^[10]

Key dates and events

• 1987 - Acquired D.L. Saslow Co another major distributor
• 1993 - Started doing business outside of the US by purchasing Healthco Canada.
• 1997 - purchased software developer Eaglesoft Inc a company founded by Scott R. Kabbes who 6 years later was made president of Patterson Dental Company. It later became Patterson Technology Center ^[11]
• 2004 - CAESY Patient Education Systems was acquired. It is used by the company to provide information relating to treatment procedures for patients. As a subsidiary the company retained its name.
• July 2004 - was renamed Patterson Companies Inc because by then it was not only in the business of dental equipment distribution, it also made software, served the veterinary market and supplied products for general medical use. Until that time it was named Patterson Dental Company.
• Dec 2008 - Patterson acquires Dolphin Imaging and Management Solutions to enhance their software portfolio to include Dolphin's dental specialty treatment planning and practice management software. ^[12]

Business segments

Patterson Dental Supply, Inc, Patterson Veterinary Supply, Inc. (formerly Webster Veterinary Supply), are both core segments of the company. Those core businesses branch out into many regional subsidiaries, most of which are based in the United States (except for Patterson Dental Canada (has 550 employees). The majority of business in Canada comes from Quebec, Ontario, British Columbia, Alberta and Saskatchewan. Software and hardware businesses are part of Patterson Dental.

Veterinary		Columbus Serum Company Odyssey Veterinary Software LLC	Associated Medical Supply New England X-Ray
Dental	Global Medical & Dentals	Denesca	Dolphin Imaging Systems Leventhal & Sons[1]

Acquisitions

On 26 April 2021, Patterson Veterinary Supply, Inc., has agreed to a deal to buy Miller Vet Holdings, LLC's assets.^[13]

Criticism and Controversy

FTP Server Databreach

In 2016, a security researcher named Justin Shafer found 22,000 patients data on an FTP Server owned by Patterson Dental. He was reportedly raided by the FBI. ^[14]

Animal Welfare Issues

In 2017, photographs captured by a former employee of a Texas blood bank that Patterson Veterinary distributed products from showed greyhounds under duress. PETA revealed pictures and video taken at The Pet Blood Bank showing kenneled dogs with open wounds, rotting teeth and severely overgrown toenails. According to The Washington Post, "Pet Blood Bank owner Shane Altizer did not deny that the images were taken there, but said they predated his 2015 purchase of the company or were “moment snapshots” unrepresentative of overall conditions now." A veterinarian who visited the facility earlier in the year said she found the dogs to be in satisfactory condition but after seeing the pictures, believed that “(T)he facility was ‘cleaned up’ before our touring...This certainly suggests that regional, state and/or federal regulation is warranted.”^[15]

On its website, Patterson said it had "ceased doing business" with the blood bank, which subsequently closed.^{[16] [17]}

FTC Antitrust

In 2019, the FTC ruled that Patterson Dental, Henry Schein, Inc., and Benco Dental violated antitrust law by refusing to compete for the business of buying groups by colluding with each other. ^[18]

On November 8, 2019 the FTC's website states: "Judge Chappell held that Benco Dental Supply Company and Patterson Companies, Inc. conspired to refuse to provide discounts to, or otherwise serve, buying groups representing dental practitioners. The judge dismissed the charges against the third respondent, Henry Schein, Inc. " ^[19]

References

1. "2010 fiscal year report page 3" (PDF). April 2010. Archived from the original (PDF) on 2011-07-10.
2. "Patterson Companies First Quarter 2010 Results" (PDF). 2010-08-26. Archived from the original (PDF) on 2011-07-10.
3. Financial Management:theory and practice
4. "Annual Changes to the NASDAQ-100 Index". 2010-12-10.
5. "Patterson Medical Acquires Rehabilitation Operating Units of DCC plc". 2010-06-17.
6. Patterson Dental Company Acquires Third Largest Distributor
7. Dental Supplier Sinks Teeth Into New Sectors
8. Lextron Inc History
9. "Patterson Dental To Purchase Health Care Supplier". The New York Times. 2003-09-19.
10. Securities and Exchange Commission 10 k form Patterson Companies, Inc.
11. "Inside Patterson Dental". Dental Tribune. 2010-05-24.
12. "Patterson Companies Acquires World-Leading Providers of 3D Imaging and Practice Management Software for Specialized Dental Practitioners". www.businesswire.com. 2008-12-19. Retrieved 2020-11-03.
13. "Patterson Veterinary Enters Agreement to Acquire Miller Vet Holdings". Financial Times. 26 April 2021. Retrieved 3 May 2021.
14. "FBI raids dental software researcher who discovered private patient data on public server". The Daily Dot. 2016-05-27.
15. Karin Brulliard, "Allegations of neglect at dog blood bank shine light on an unregulated industry," The Washington Post, 23 September 2017.
16. "Update Regarding Patterson Veterinary Supply and Recent PETA Allegations," Patterson Veterinary, 28 September 2017.
17. Karin Brulliard, "Dog Blood Bank Closes Following Allegations of Neglect," The Washington Post, 27 October 2017.
18. Judge D. Michael Chappell, "DOCKET NO. 9379," The Federal Trade Commission, 15 October 2019.
19. "Dental Products Distributors Benco Dental Supply Company, Patterson Companies, Inc. Decline to Appeal ALJ Decision, Making that Decision Final". Federal Trade Commission. 2019-11-08. Retrieved 2024-04-30.

External links

• Business data for Patterson Companies, Inc.:
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  • SEC filings
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