Covetrus

Market position

Positioned as a global leader in animal-health technology and services; its predecessor Butler Schein Animal Health was described as the largest veterinary sales and distribution company in the United States. Covetrus ranked 593 on the 2021 Fortune 1000 list of largest U.S. corporations by total revenue.

Combines veterinary product distribution with proprietary practice software and prescription/online pharmacy management on a single platform, a combination created by merging Henry Schein Animal Health's distribution scale with Vets First Choice's prescription management technology.

Technology

Veterinary software systems including practice management software (such as AVImark and RxWorks-derived offerings), data-driven applications, client communications tools, and prescription/online pharmacy management. The North American product catalog also features partner technologies such as SignalPET AI-based dental radiograph interpretation and Midmark intraoral DR sensors.

Go-to-market

Direct sales and distribution to veterinary practices through regional operations and an online ordering platform; the North America ordering site consolidated office-use compounded medications and in-clinic supplies onto myCovetrus.com. The company supports customers with promotions, publications, webinars, training and marketing tools, and operates under multiple existing brands.

Veterinary practices and practice partners, including companion animal, equine, livestock and special-markets clinics, served in more than 100,000 customer locations worldwide.

Geography

Headquartered in Portland, Maine, with operations primarily in North America, Europe and Asia-Pacific. The company opened a new corporate headquarters in Portland's Old Port district and is among Maine's larger employers.

History

Covetrus traces its lineage to Henry Schein's animal health business, which was assembled through a series of transactions: the 2006 acquisition of veterinary distributor NLS Animal Health; the 2009 Butler Schein Animal Health joint venture with Butler Animal Health Supply; the 2012 acquisition of Netherlands-based AUV Veterinary Services for approximately $40 million; the 2013 rebranding of Butler Schein as Henry Schein Animal Health; the 2015 merger of Scil Animal Care into that business; and the 2016 acquisition of veterinary practice management software provider RxWorks. In 2018 Henry Schein announced it would spin off the animal health unit and merge it with Portland, Maine-based Vets First Choice; the combined company, named Covetrus, began trading on Nasdaq in February 2019, with Henry Schein shareholders owning roughly 63% and Vets First Choice shareholders roughly 37%. CD&R had first invested in predecessor Vets First Choice in 2015. In May 2022 CD&R and TPG agreed to take Covetrus private at $21.00 per share, and the transaction closed on October 13, 2022.

Risks & controversies

In 2021 online pet retailer Chewy Inc. filed a lawsuit against Covetrus alleging it illegally diverted potential purchases of pet medication and food away from Chewy. Company disclosures also flag risks including integration of acquisitions, supplier and distributor relationships, price sensitivity among customers, litigation, interest rate and foreign exchange exposure, cybersecurity and third-party service provider dependence, and the effects of the COVID-19 pandemic on distribution centers and pharmacies.