Patterson Companies Inc.
TypePublic
IndustryDental equipment
Veterinary pharmaceuticals
Founded1878 (Patterson Dental)
Milwaukee, Wisconsin
FounderMyron F., John G. Patterson
HeadquartersMendota Heights, Minnesota, United States
Key people
John D. Buck Chair
Mark S. Walchirk Pres,CEO
Revenue$3.237 bil FY'10Increase4.6%[1]
$212.254 mil FY'10Increase6.3%[1]
Total assets$2,447.952 mil July'10Increase1%[2]
Total equity$1,485.881 mil July'10 Increase1%[2]
Number of employees
7,500[3] (2017)
Divisions18 sub, 3 div
Patterson Dental Supply, Inc.
Patterson Veterinary Supply, Inc.
Animal Health International
Websitepattersoncompanies.com

Patterson Companies Inc is a medical supplies conglomerate primarily in the business of veterinary and dental products (ranging from xray equipment to consumable products, dental consumables make up the biggest part of the dental industry).[4] Traditionally a dental company, it diversified its business at the turn of the millennium when it acquired 55-year-old company, JA Webster Inc, a distributor of veterinary products. That business segment (now known as Patterson Veterinary) currently distributes equipment (diagnostic and surgical) and medicine (anaesthetics, vaccines). The company operates directly in only the US and Canada (in Canada through subsidiary Patterson Dental Canada).

In 2008 it was noted as having one of the lowest debt ratios among companies in the health care sector.[5] 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.[6]

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.[7]

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)[8] and ProVet in 2004. For about 130 years it dealt only in dental supplies.[9][10] It began selling rehabilitation supplies in 2004 after acquiring Ability One Products Corporation followed by Medco the same year.[11]

It went public on the Nasdaq in 1992 with an IPO of around 480 million dollars.[12]

Key dates and events

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]

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. [15]

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.”[16]

On its website, Patterson said it had "ceased doing business" with the blood bank, which subsequently closed.[17] [18]

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. [19]

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. " [20]

References

  1. ^ a b c "2010 fiscal year report page 3" (PDF). April 2010. Archived from the original (PDF) on 2011-07-10.
  2. ^ a b "Patterson Companies First Quarter 2010 Results" (PDF). 2010-08-26. Archived from the original (PDF) on 2011-07-10.
  3. ^ "Patterson". Fortune. Retrieved 2018-12-31.
  4. ^ "Dental Consumables Market". 2010-06-21.
  5. ^ Financial Management:theory and practice
  6. ^ "Annual Changes to the NASDAQ-100 Index". 2010-12-10.
  7. ^ "Patterson Medical Acquires Rehabilitation Operating Units of DCC plc". 2010-06-17.
  8. ^ Patterson Dental Company Acquires Third Largest Distributor
  9. ^ Dental Supplier Sinks Teeth Into New Sectors
  10. ^ Lextron Inc History
  11. ^ "Patterson Dental To Purchase Health Care Supplier". The New York Times. 2003-09-19.
  12. ^ Securities and Exchange Commission 10 k form Patterson Companies, Inc.
  13. ^ "Inside Patterson Dental". Dental Tribune. 2010-05-24.
  14. ^ "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.
  15. ^ "FBI raids dental software researcher who discovered private patient data on public server". 2016-05-27.
  16. ^ Karin Brulliard, "Allegations of neglect at dog blood bank shine light on an unregulated industry," The Washington Post, 23 September 2017.
  17. ^ "Update Regarding Patterson Veterinary Supply and Recent PETA Allegations," Patterson Veterinary, 28 September 2017.
  18. ^ Karin Brulliard, "Dog Blood Bank Closes Following Allegations of Neglect," The Washington Post, 27 October 2017.
  19. ^ Judge D. Michael Chappell, "DOCKET NO. 9379," The Federal Trade Commission, 15 October 2019.
  20. ^ https://www.ftc.gov/news-events/press-releases/2019/11/dental-products-distributors-benco-dental-supply-company The Federal Trade Commission, retrieved April 1, 2020