Henry Schein spins off animal health to focus on dental and medical
Henry Schein has recently announced the completion of the spin-off of its animal health business as it tightens its focus on driving growth in existing dental and medical markets while pursuing new investment opportunities.
As part of the spin-off the company received approximately $1.1 billion in what is expected to be tax-free proceeds that will be used to pay down debt. The debt repayment will generate additional debt capacity for Henry Schein, which could be used for general corporate purposes, including share repurchases, mergers and acquisitions.
Henry Schein has stated that it will continue to: “Advance its long-standing goal of helping health care professionals operate more efficient practices by providing new solutions and technologies for the ultimate benefit of patients.”
The Company’s suite of offerings includes business, clinical and technology solutions, plus supply chain solutions, that the company says are designed to: “Provide customers with the industry’s broadest product selection and deepest inventory, delivering the right products at the right time.”
Stanley M. Bergman (top) Chairman of the Board and Chief Executive Officer of Henry Schein, explained: “Through our reliable network of trusted advisors, we provide customers invaluable information, education, and advice.
“Customers rely on us because of our network of valued suppliers and industry experts, our comprehensive offering of technology and services, our supply chain excellence, our deep industry and professional relationships, and the talented Team Schein Members who support our constituencies every day.”
Following the spin-off of Animal Health, Henry Schein will have more than 18,000 team members in 31 countries, serving more than 1 million customers. Based on 2017 pro-forma sales of approximately $9.0 billion (excluding the $3.6 billion contribution of Animal Health), the Company’s revenue breakdown was $6.1 billion, or 68%, from Dental; $2.5 billion, or 28%, from Medical; and $338 million, or 4%, from Technology and Value-Added Services.
A Solutions-Based Approach
While Henry Schein historically has been associated with the distribution of health care products, going forward it will increasingly focus on customer support, supply and full-service value propositions plus clinical solutions including a wide range of implants, orthodontic devices, and bone regeneration materials, as well as telemedicine and clinical decision support services.
Technology solutions will be led by Henry Schein One, the joint venture behind the award-winning Dentrix practice management software, in addition to a broad range of digital equipment, technical service, and on-site support.
Mr Bergman continued: "Henry Schein is so much more than a supplier of products. We provide the solutions health care professionals rely on to operate more efficiently and provide patients with the very best care.
“We intend to grow our dental and medical businesses through continued investments in the products, technologies, services, and support that comprise our unique set of health care solutions.
“We have an almost nine-decade history of successful reinvention, including 23 years as a public company, delivering consistent results as markets change. We intend to build on our record of success in the years ahead.”
As an example of its continuous pursuit of profitable growth, on 23rd January Henry Schein announced the signing of a definitive agreement to acquire approximately 93% of North American Rescue, a leading provider of survivability and casualty-care medical products to the defence and public-safety markets.