MWI Animal Health’s acquisition of NEVSCO signals growth in a key region of the country
MWI Animal Health, a part of AmerisourceBergen, announced the acquisition of Northeast Veterinary Supply Co. (NEVSCO), an independent, regional distributor of veterinary pharmaceuticals and medical supplies servicing primarily the northeast region of the U.S. “The acquisition of NEVSCO continues to strengthen MWI’s position to better support the viability of independent veterinary practices and provide even greater value and care to current and future animal health customers,” the company said in a release.
It is a significant commitment to the northeast region of the United States, with MWI adding NEVSCO’s 40+ associates and leaders to its organization.
Vet-Advantage spoke with Mark Shaw, President of MWI Animal Health, about the acquisition, and plans moving forward.
Veterinary Advantage: Congratulations on the acquisition of NEVSCO. Why did it make sense for MWI to make this move now?
Mark Shaw: At AmerisourceBergen, we believe that we have a responsibility to create healthier futures. That’s our purpose. Our acquisition of NEVSCO is consistent with this belief. We believe that the acquisition of NEVSCO meaningfully expands our scale in the animal health industry – especially in the northeast region of the United States, which is very strategic for us. By expanding our footprint geographically, we believe this further enables us to improve product access to veterinarians, increase supply chain efficiency and enhance animal care in both the companion and production animal spaces.
We believe our investment in NEVSCO is a demonstration of our continued commitment to community-based care and growing independent veterinary practices. We’re really excited about being able to support and enhance NEVSCO’s high-touch consultative service model. The timing was good for both of our companies and we think it’s a very strategic fit.
Veterinary Advantage: What made NEVSCO an appealing organization to acquire?
Shaw: First, bringing in NEVSCO is consistent with our culture and how we’ve made acquisitions at AmerisourceBergen. Our leadership has primarily been developed through acquisition. We buy companies for talent – first and foremost – and NEVSCO has exceptional talent. They have a proven track record in this geography, and we really appreciate the fact that they employ an exceptional value-based sales force that uses a consultative approach with the practices they are calling on. It’s something we highly value and want to continue to invest in and expand.
In both cases, their company and ours, we have very effective, value driven sales forces. We intend to continue creating value added program and service offerings, and expand the level of differentiation that we provide.
Veterinary Advantage: How does this shape MWI’s footprint moving forward?
Shaw: The acquisition of NEVSCO expands our presence in the northeast region of the United States. It’s an area that’s important to us, an area that’s the most recent in the evolution of MWI. We think it’s a great fit for enhancing the reach that we’re able to offer in this very important market.
Veterinary Advantage: How will this impact NEVSCO’s veterinary practice customers?
Shaw: We believe that customers will see the same set of values NEVSCO provided, now with the added scale and resources of AmerisourceBergen and MWI. We’re excited about being able to provide existing customers, and new customers, access to what we believe are our best-in-class animal health offerings, an expanding product portfolio, and also access to MWI’s industry-leading e-commerce platform, as well as practice-building programs.
Veterinary Advantage: What’s the response been in your own organization to the acquisition?
Shaw: We’ve had a very positive response within our organization. Our team is really excited to bring the NEVSCO team into the MWI family.
Veterinary Advantage: Will NEVSCO’s distribution center stay open? How will things work out logistically?
Shaw: MWI has a strong distribution center network, and we have a facility that is also geographically close. We’ll be consolidating that distribution center and services into our own MWI facility. We’re hopeful that we can attract all the associates from NEVSCO’s distribution center into ours.
Veterinary Advantage: What do you view as the biggest challenges your customers face in today’s marketplace, and how are you positioning MWI to help meet those challenges? How does NEVSCO add to that?
Shaw: The industry is very dynamic. As veterinary practices look to the future, we think it’s important we’re able to provide services and tools which help them continuously improve their competiveness and quality of animal care and broaden their offering to their customers. That’s not exclusive to independent practices, because we’re also growing with corporate practices as well. We want to help ensure, as it relates to community-based care, that we are providing practices the value-added tools that they need. We believe we are well-positioned to do that.
As far as some of the additional challenges that they see, veterinarians have a mindful eye on the changing landscape of the animal health industry. Whether it is continued market consolidation or new market entrants like Amazon, mail order offerings, or others we will continue developing and positioning tools that will help veterinary practices provide solutions, and provide services that enhance patient care in ways that many of the emerging and competing influences can’t or won’t provide.