Stuart Rose, Mananging Director, Tully & Holland, Discusses the Acquistion by Henry Schein of Alpha Scientific
April 26, 2011 - Multichannel Merchant quotes Stuart Rose, Managing Director of Tully & Holland's Multi-Channel Merchant and Consumer Group in an article published today.
The announcement regarding Henry Schein's acquisition of Alpha Scientific, a healthcare products and services provider located in California, marks Schein's fourth acquisition since October 2010.
Schein states this acquisition strengthens its presence in California. Stuart Rose commented "Through the years, Schein has consistently added companies to run through their distribution and fulfillment operations." Rose suggests their continued interest in acquisitions is two-fold. "The merchant needs to continually grow or it will see a hit to its stock price; and they can arbitrage their acquisition valuations. Schein buys companies at a normal five to eight times EBITDA, that when purchased its multiple becomes 11 times EBITDA, reflective of Schein's multiple of earnings.
Tully & Holland, Inc. is a leading US investment bank that provides sophisticated corporate finance advisory services to consumer product companies with special emphasis on retailers, multi-channel marketers, food companies, and consumer product manufacturers/distributors. Stuart Rose joined Tully & Holland in 2005 to lead the firm's merger and acquisition and corporate advisory services to its retail and direct marketing clients.