November 21, 2014 at 5:00 p.m.
Drs. Foster and Smith looking forward to positive relationship with Petco
Drs. Foster and Smith looking forward to positive relationship with Petco
But, according to Dr. Race Foster, DVM, co-founder of Drs. Foster and Smith, the change in ownership will result in only positives for the Rhinelander community.
For example, Foster said he believes the facility at 2253 Air Park Road will continue to be called Drs. Foster and Smith.
"To my knowledge, it's staying the same name, Drs. Foster and Smith," he said.
Foster said he and his business partner, Dr. Marty Smith, decided to sell the company in order to prepare it for a stronger, more successful future.
"Marty and I have been here 31 years, and we're getting older," he said. "The business is at its peak. We had some management changes the last year that really became positive for the company. We've had record sales, record growth, and we thought it was a good time, given our ages, to look for somebody that could join and help the company get to the next level. We're at $250 million in sales today, or close to it, and we're playing in a big arena with a lot of competition. It only made sense to look for a partner and join forces."
Petco is the perfect partner, he said.
"We went out and we talked with multiple buyers, and the one thing we requested was that whoever buys us leaves the business in Rhinelander (and Petco agreed to that)," Foster said.
In addition to staying in Rhinelander, Foster said the plan is to keep the faces within Drs. Foster and Smith the same.
"Marty and I are staying on. We're going to work for a number of years yet with Petco, and all the management is staying," he said. "Petco gave us a good level of satisfaction that this transition would be good for us, good for the employees, good for the community, good for Oneida County, and so therefore we felt comfortable with it."
Foster said one of the reasons he and Smith decided to sell to Petco is because the two companies share similar values.
"I think if you look at the whole national transition of pet care nationwide, pet care and what's going on in veterinary clinics, it's all an evolving process with the way pets are cared for, and Petco has always had an initiative to be a health and wellness type of company - one that cares about the health of pets," Foster said.
"They're a real professional outfit and what we have done, of course our specialty has been animal health - we're veterinarians - we have a very strong veterinary pharmacy group here, and I think Petco saw that as a synergy and a way for them to actually be a bigger player in animal health."
That means there will be no reduction in the services offered by Drs. Foster and Smith. In fact, Foster said he hopes to see operations expand.
"As far as I'm aware it's all going to continue to be offered, and I expect we're actually going to grow a lot of those areas," he said. "We have our aqua culture facility here. That will play a key role with Petco. Our pharmacy is one of the biggest in the nation and I'm sure they're going to augment that. I don't see a lot of changes other than we're just going to get busier and I believe we'll probably add a few hundred jobs over a five-year period if we meet all of our objectives."
"I don't see us downsizing," he added.
Petco CEO Jim Myers echoed Foster's remarks.
"This move underscores our commitment to nurturing the complete health and well-being of animals and further allows Petco to meet the diverse and expansive needs of pet parents," he said in a press release announcing the acquisition. "As pet lovers first and foremost, our values are perfectly aligned with Drs. Foster and Smith, and we're confident this new addition to our business will help us continue to offer the very best in products and services to pets and pet parents."
Drs. Foster and Smith was founded in 1983 as a group of four veterinary clinics with the goal of helping pets live healthier, happier lives. Foster said it's been a thrill to watch pet care become such an important part of American life.
"I think when you go back to where we were in 1983, we were three veterinarians that were watching how pet care was evolving in the United States. Pets were becoming more of a family member (rather) than just a dog tied up out back or a cat let out the door," he said. "The way pets are cared for just developed and evolved in this country, and we stayed right with it. In fact, we helped it evolve. We provided the medications initially so (pet owners) could do some of that at home versus the high cost of veterinary care. They could do that for themselves."
"I think we just evolved along with the pet care concept in this country, and we did it here in Rhinelander," he added.
Drs. Foster and Smith's love for Rhinelander cannot be understated.
"Rhinelander is a great place. The Midwest values and work ethic is tremendous. We have a very long longevity for our personnel here and that was actually one thing that Petco noted, how long our agents stay and how well-trained they are and how much they could offer and support their concepts. That's the value you get in a place like Rhinelander."
"I think (the public will) find that Foster and Smith will be a bigger part of Oneida County and the community. I'm quite confident we'll grow in terms of volume, job security, available jobs," he added.
"I see nothing but good for the community."
The acquisition is expected to be completed by early 2015 and is subject to customary closing conditions, including receipt of regulatory approvals. The terms of the deal have not been disclosed.
Marcus Nesemann may be reached at [email protected].
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