Patterson Companies, Inc.

Leveraging Fleet for Liquidity & Increasing Cash Flow.

Patterson Companies, Inc., a quickly growing dental supply and veterinary company partnered with Merchants Fleet to help liquefy investments without reducing the size of their fleet.

Having an established and trusted relationship with Merchants Fleet, they reached out for assistance.

Read the Patterson Story

Mobility Services

Strengthening the Dental and Animal Health Markets
Relying heavily on their fleet to conduct business, Patterson partnered with Merchants in June 2016.
Dental Equipment/Animal Health
The re-amortization liquidity strategy was instrumental in supporting company growth initiatives without a break in business operations.
Founded in 1877
Patterson Companies is headquartered in Saint Paul, MN, and has over 65 branches in the U.S.
in equity was passed to the client as a one-time cash infusion
extended amortization term for 750 vehicles.
reduction in monthly lease payments as a result of Merchants’ re-amortization solution.

“We’d worked with Merchants Fleet in the past and knew they would be able to help us. They worked with us closely, analyzing potential solutions, and always keeping our long and short-term goals in mind. They’ve helped us to grow our fleet in a sustainable way.”

Jim Keding
Director Corporate Transportation, Patterson Companies, Inc.

“With our open-ended lease, we were able to reinvest in our business, while paying lower monthly payments. We’re excited to continue to grow our fleet and hope to work with Merchants again in the future.”

Jim Keding
Director Corporate Transportation, Patterson Companies, Inc.

Open-ended Lease and TRAC Clause

When Patterson approached Merchants, they were using a leased fleet of over 1,300 vehicles on 50-month amortization periods, cycling every three years. This was not sustainable or financially beneficial to the company.

Merchants analyzed possible solutions, working closely with Patterson’s Director of Corporate Transportation. The solution was a re-amortization strategy, in which Patterson would increase the amortization period to 60 months on 60 of their vehicles. This provided the company with a one-time, upfront credit that reduced monthly rental payments for branch locations and provided cash flow relief.

Merchants was also able to provide Patterson with an open-ended lease with a terminal rental adjustment clause (TRAC). Within the TRAC clause, each vehicle’s book value was readjusted to optimize cash flow. Having worked with Merchants for many years, Patterson was confident that this was the best solution for their team.

As a result, Patterson got an influx of cash to reinvest in their business and is now able to deliver pet and dental equipment, technology, and services more efficiently to their clients. Merchants was able to provide a flexible term lease to maximize Patterson’s revenue stream. Since Merchants extended the payment terms, monthly payments were able to be reduced.

Why Should Vocational Fleets Choose Merchants
Consulting Merchants Fleet offers premier consulting services to help companies strategically meet their goals. We combine years of industry experience to provide tailored solutions for fleets.
Save Money We know that every fleet has unique needs. We take the time to understand their challenges to find a solution that reduces redundant or excessive spending.
Innovative Technologies Get the most accurate view of your fleet operations with telematics reporting and analytics. Our team can suggest adjustments to improve fleet efficiency.

Leaving Inefficiencies in the Rear-View Mirror

All of Patterson’s branches benefited from the amortization strategy and are able to more efficiently deliver innovative products to their customers. Fleet and branch managers can focus on their business, rather than paying costly monthly fees.

In the future, Patterson is planning on working with Merchants to see if re-amoritizing more of their fleet would be beneficial, or if they should take another route. Merchants evaluate each project with an understanding of objectives and short and long-term needs.