Heska Corporation Announces Acquisition of CVM Companies
LOVELAND, Colo., Jan. 9, 2020 /PRNewswire/ -- Heska Corporation (NASDAQ: HSKA - News; "Heska" or the "Company"), a provider of advanced veterinary diagnostic and specialty products, announced today that the Company has acquired a 100% interest in CVM Diagnostico Veterinario, S.L. and CVM Ecografía, S.L. (referred to collectively as the "CVM Companies" or "CVM") of Spain. The CVM Companies have been leading providers for over 25 years of imaging and blood testing products to the companion animal market in Spain, a market with approximately 6,000 veterinary clinics and hospitals. CVM Companies estimate their market share prior to the deal at #1 in Ultrasound, #1 in Digital Radiography, and #2 in POC Blood Diagnostics.
Heska's Chief Executive Officer and President, Kevin Wilson, commented, "We have respected the reputation the CVM Companies have built in Spain for some time. We are pleased they agreed late last year to join the Heska family. Adding a strong presence in Spain is consistent with our stated strategy of expanding Heska's presence in the companion animal diagnostic market throughout the globe. With over 2,500 active customers of advanced veterinary diagnostics that are supported by a highly trained support team and substantial logistics assets, CVM is exactly what we were looking for to expand Heska into Spain. The Spanish market is a healthy, core European market that fits well with Heska's Reset subscriptions model for diagnostics and it is a key part of Heska's geographic expansion strategy in advance of our upcoming product launches. We are thrilled to make this investment in CVM and their strong, experienced team to grow together in our quest to be #1 or #2 in the markets we serve."
CVM Companies' co-founders, Roberto Rupérez Crespo, DVM, and Carlos Rupérez Crespo, DVM, jointly added, "We are proud of the healthy and growing business the entire CVM team has built over this past 25 years. We have partnered with our veterinarian friends and associates throughout Spain in ultrasound, digital radiography, point of care laboratory, education, MRI, and other technologies for over two decades. With this new chapter, we prepare to invest and grow even faster. While we don't expect major near term changes in our business as a result of this agreement, we are excited by the products Heska has now and under development that will be of strong interest to thousands of CVM veterinarian customers throughout Spain and into broader Europe. Products such as Heska's Element i+ (immunoassay) and upcoming Element UF (urine-fecal) analyzer offer more advanced methods and exclusive tests to address patient and veterinarian needs. We are confident that CVM is the team to bring them to the Spanish market as the winning solutions. The whole CVM team is excited about this next chapter together with Heska."
Heska Corporation (NASDAQ: HSKA - News) manufactures, develops and sells advanced veterinary diagnostic and specialty healthcare products through two business segments. The Core Companion Animal Health ("CCA") segment represents approximately 85% of revenues, and the Other Vaccines and Pharmaceuticals ("OVP") segment represents approximately 15% of revenues, as of September 30, 2019. CCA segment includes Point of Care Laboratory testing instruments and consumables, primarily under a unique multi-year Reset Subscription model, digital imaging products, software and services, local and cloud-based data services, allergy testing and immunotherapy, and single use offerings such as in-clinic diagnostic tests and heartworm preventive products. OVP segment includes private label vaccine and pharmaceutical production under third party agreements and channels, primarily for herd animal health.
This document contains forward-looking information related to the Company. These forward-looking statements generally include statements that are predictive in nature and depend upon or refer to future events or conditions, and include words such as "believes," "plans," "anticipates," "expects," "intends," "strategy," "future," "opportunity," "may," "will," "should," "could," "potential," or similar expressions. All of the statements in this document, other than historical facts, are forward-looking statements and are based on a number of assumptions that could ultimately prove inaccurate. Forward-looking statements in this document include, among other things, statements with respect to anticipated investments and growth; the number of customers that the Company will be able to acquire and retain; uncertainties related to any product's ability to perform and be recognized as anticipated, in particular when such product is under development; uncertainties related to Heska's ability to sell and market its products in an economically sustainable fashion, including related to varying customs, cultures, languages and sales cycles and uncertainties with foreign political and economic climates; and the Company's ability to integrate the acquired CVM business within its existing operations. Other factors that could cause actual results to differ materially from those matters expressed in or implied by such forward-looking statements are set forth under "Risk Factors" in the Company's most recent annual report on Form 10-K and subsequent quarterly reports on Form 10-Q.
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SOURCE Heska Corporation
Company Codes: NASDAQ-SMALL:HSKA