If the confidential information posted on DentalTown is true, it would seem that the relationship between Kavo/Gendex (owned by Danaher) and Patterson has now been terminated. Not sure how this will affect end users. Patterson customers will certainly have less options.
Here's the info from the post:
NOTICE FROM KAVO / GENDEX
March 20, 2006
Dear Associates,
Effective today, we have terminated our distribution arrangement with Patterson. Patterson has chosen to focus on other lines and as a result, we will no longer be selling KaVo and Gendex products through Patterson. We have no plans to make any other changes to our distribution network. This was an isolated situation.
This is an exciting opportunity for us as we have several other very committed partners who will be mobilizing their marketing and sales resources to take advantage of this opportunity. As a result, we expect this change to strengthen our business results.
Regards,
Bob Joyce
President, KaVo/Gendex
CONFIDENTIAL
KaVo / Gendex / Patterson Distribution Change
Q&A
Q. What happened with Patterson?
A. As a result of Patterson's decision to focus on other product lines, we have decided to terminate our distribution agreement.
Q. Why now? What changed?
A. There was no single incident that led to our decision. Patterson has made it clear over the past several months that they were focusing on other lines and our decision reflects our strategy to grow our lines with the most committed partners.
Q. How will the change impact the KaVo and Gendex businesses?
A. We have very strong distribution partnerships and a group that is highly committed to growing the KaVo and Gendex lines. We expect the combination of our distribution partnerships with our new products and promotional activity will result in stronger business results moving forward.
Q. Will this change have any material effect on Danaher, KaVo or Gendex?
A. No, this change will not have any material effect on Danaher, KaVo or Gendex results.
Q. When does the change become effective?
A. We announced the change to Patterson today and the change becomes effective 60 days from today, in accordance with our distribution agreement.
Q. Is this an indication that KaVo and Gendex plan to go direct vs. through distribution in the future?
A. No. We have no plans to deviate from our distribution model. The Patterson situation was an isolated situation.
Q. Is this distribution strategy an indication that KaVo and Gendex plan to reduce the number of distribution partners in the future?
A. No. This change in our strategy is about partnering with strong distribution companies who are interested in working together to grow the KaVo and Gendex product lines. We will continue to work with a very strong network of distribution partners.
Q. What do you expect the reaction of your other distribution partners to be?
A. The reaction by our other distributors to the situation with Patterson has been very positive. It reinforces the fact that several of them overlap with Patterson at our accounts and becomes an enabler for them to take share with the KaVo and Gendex brands.
Q. What impact do you feel this will have on your customers (end users / dentists)?
A. We expect this to have little or no impact on dentists who use KaVo and Gendex products. Dentists buy (or can buy) from any number of distributors so our products and service will remain readily available to them.
Q. Were there any products that were available exclusively through Patterson and if so how do you plan to handle them?
A. None of our products were exclusively available through Patterson.