Patterson Companies Inc. said Wednesday it has agreed to sell its medical business to private-equity firm Madison Dearborn Partners for about $715 million in cash. The deal is expected to close in the second quarter. "Patterson's strategy for growth is to focus our resources and investments on building our dental and animal health businesses," Chief Executive Scott Anderson said in a statement. The medical business is expected to thrive under new ownership "that is dedicated to driving growth in the rehabilitation market", he said. Patterson Medical had sales of $464.2 million in fiscal 2015 and earnings before interest, taxes, depreciation and amortization of $67.2 million. Patterson shares rose 1.3% in early trade and are up 2.3% in the year so far, while the S&P 500 has gained about 0.2%.
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