{
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  "docSlug": "04cdac207807",
  "documentTitle": "Henry Schein, Inc. (HSIC)",
  "authorId": "54_Spruce_Point_Capital",
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  "documentKindSlug": "activist-deck",
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  "sourceTypeSlug": "short_seller",
  "sourceTypeLabel": "Short seller",
  "presentationDate": "2018-09-26 00:00:00",
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  "pageNumber": 14,
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  "notes": "Slide 14 of an activist deck by Spruce Point Capital Management.",
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      "kind": "callout",
      "text": "The Vets First Corporation transaction is a tax-free event for U.S. tax purposes and is expected to realize $100M of operating income synergies by year three.",
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      "text": "Reverse Morris Trust: intended to be a tax-free spin-off to Henry Schein shareholders for U.S. tax purposes, followed by a merger with Vets First Choice. Expected to close: end of 2018 / January 2019. Expected ownership: HSIC shareholders: 63%, Vets First Choice shareholders: 37%. Combined company expected to realize in excess of $100M of operating income synergies by year three. Tax-free dividend of $1.0B to $1.25B in cash to RemainCo from SpinCo. Henry Schein plans to use the proceeds of this transaction for general corporate purposes, including share repurchases, paying down debt and disciplined M&A. Post closing, Henry Schein expects to deliver EPS growth for the remaining consolidated Henry Schein business in the high-single digit to low-double digit range.",
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      "text": "operating income synergies: $100M",
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      "kind": "source-note",
      "text": "Source: Henry Schein 8K (April 23, 2018), Vets First Choice",
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      "kind": "title",
      "text": "Vets First Corporation Transaction Summary",
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      "evidence": "The document agitates the problem by highlighting the market's misconception of HSIC's Animal Health business and its growth potential.",
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