Covetrus Completes Separation from Former Parent Company
The Company Exits Final Transitional Services Agreement and Announces the Consolidation of its North American Commercial Organizations
Portland, Maine, United States:
Covetrus (Nasdaq: CVET), a global leader in animal-health technology and services, announced today that all 72 transitional services agreements with Henry Schein, Inc. (Nasdaq: HSIC), its former parent company, have now been exited. The final exit, which was completed ahead of schedule and less than two years following the completion of its spin-off, marks a significant milestone that will enable the Company to deliver greater coordination of its businesses as the Company moves towards the next stage of its three-year strategic plan.
Covetrus also announced a consolidation within its North American commercial organizations to drive increased strategic alignment between its customers and its full scope of products and capabilities. The new structure brings together Covetrus’ North American commercial teams under unified leadership to maximize account management and support for its customers’ businesses. This change also unlocks resources for Covetrus’ Global Technology Solutions team to focus on executing on the Company’s technology roadmap, including new software, e-commerce enhancements and bringing prescription management to new geographies in 2021 and beyond.
“I congratulate our team for their remarkable work to complete our separation, and our thanks to Henry Schein for their help throughout the process,” said Covetrus president and CEO Ben Wolin. “Covetrus enters 2021 with momentum, greater alignment around our customers and focus on delivering the significant growth opportunities ahead. This increased technology investment and consolidation position us to win for, and on behalf of our customers.”
The Company’s new commercial structure also reduces duplications within the combined businesses, which impacted approximately 80 employees. “While it is always difficult when decisions impact members of our team, these actions will strengthen our customer relationships, enable new investments in our strategic growth initiatives and foster greater innovation within our industry,” said Wolin.
Additionally, the Company announced that it has entered into an agreement to transfer its French distribution business, Hippocampe Caen S.A, to COVETO, a French cooperative, effective December 31, 2020. The transfer will modestly reduce the Company’s previously disclosed severance obligations tied to its decision in October 2020 to exit that business. Covetrus continues to service the French market with practice management software and proprietary products.
Disclaimer: This content is distributed by Business Wire India.
