MELVILLE, N.Y.--(BUSINESS WIRE)--Henry Schein, Inc. (NASDAQ: HSIC), the world’s largest provider of health care solutions to office-based dental and medical practitioners, announced plans to enter the upper- and lower-extremities specialty segment of the orthopedic market in line with our long-standing strategy.
The Company today announced that it has signed an agreement to acquire a majority interest in TriMed, Inc., a global developer of solutions for the orthopedic treatment of lower extremities (foot and ankle) and upper extremities (primarily hand and wrist).
Headquartered in Santa Clarita, CA, TriMed had 2022 net sales of approximately $48 million. The transaction is subject to certain regulatory approvals and closing conditions, and is expected to be completed in the first quarter of 2024. Henry Schein expects the transaction to be neutral to 2024 non-GAAP earnings per share and accretive thereafter. Financial terms were not disclosed.
In addition, Henry Schein has entered into a strategic relationship with Extremity Medical LLC, an innovative medical device company focused on developing new products for fusion, fixation, and motion preservation in the orthopedic treatment of the lower extremities and wrist. Headquartered in Parsippany, NJ, Extremity Medical will operate as a separate, stand-alone company.
"Partnering with the TriMed and Extremity teams will provide Henry Schein with a platform to establish ourselves as a leading manufacturer and supplier in the Foot and Ankle as well as Hand and Wrist extremity segments of the orthopedic market,” said Stanley M. Bergman, Chairman and Chief Executive Officer, Henry Schein, Inc. “We believe the experienced leadership team that we have assembled is well-positioned to leverage our deep and longstanding relationships with existing integrated delivery network and ambulatory surgery center customers.”
TriMed founders David Medoff, Chief Commercial Officer, and Robert Medoff, MD, Medical Advisor, will continue to be a part of the management team of TriMed and bring to Henry Schein extensive experience, primarily in product development and commercial relationships.
“Through our new partnership with Henry Schein, we look forward to working together to identify new opportunities to provide quality care to patients,” said David Medoff. “TriMed provides unique treatment options for challenging indications and injuries. Henry Schein will help to accelerate our growth and increase our reach within the medical community.”
Matthew Lyons, CEO of Extremity Medical, added: “Our strategic relationship with Henry Schein will enable us to expand our reach, ultimately improving patient care and outcomes.”
“We are looking forward to entering the extremity segment with the complementary portfolios of TriMed and Extremity Medical, which extend our Brasseler Medical orthopedic cutting accessories and revision instrument solutions,” said Tom Popeck, President of Henry Schein’s Healthcare Specialties Group. “Upper and lower extremities are among the fastest-growing segments of orthopedics, representing a total addressable market of more than $5.5 billion. We are confident that we will accelerate the reach of TriMed and Extremity on a global basis.”
About Henry Schein, Inc.
Henry Schein, Inc. (Nasdaq: HSIC) is a solutions company for health care professionals powered by a network of people and technology. With approximately 24,000 Team Schein Members worldwide, the Company's network of trusted advisors provides more than 1 million customers globally with more than 300 valued solutions that help improve operational success and clinical outcomes. Our Business, Clinical, Technology, and Supply Chain solutions help office-based dental and medical practitioners work more efficiently so they can provide quality care more effectively. These solutions also support dental laboratories, government and institutional health care clinics, as well as other alternate care sites.
Henry Schein operates through a centralized and automated distribution network, with a selection of more than 300,000 branded products and Henry Schein private-brand products in stock.
A FORTUNE 500 Company and a member of the S&P 500® index, Henry Schein is headquartered in Melville, N.Y., and has operations or affiliates in 33 countries and territories. The Company's sales reached $12.6 billion in 2022, and have grown at a compound annual rate of approximately 12.1 percent since Henry Schein became a public company in 1995.
For more information, visit Henry Schein at www.henryschein.com, Facebook.com/HenrySchein, Instagram.com/HenrySchein, and Twitter.com/HenrySchein.
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In accordance with the “Safe Harbor” provisions of the Private Securities Litigation Reform Act of 1995, we provide the following cautionary remarks regarding important factors that, among others, could cause future results to differ materially from the forward-looking statements, expectations and assumptions expressed or implied herein. All forward-looking statements made by us are subject to risks and uncertainties and are not guarantees of future performance. These forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause our actual results, performance and achievements or industry results to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. These statements include EPS guidance and are generally identified by the use of such terms as “may,” “could,” “expect,” “intend,” “believe,” “plan,” “estimate,” “forecast,” “project,” “anticipate,” “to be,” “to make” or other comparable terms. A fuller discussion of our operations, financial condition and status of litigation matters, including factors that may affect our business and future prospects, is contained in documents we have filed with the United States Securities and Exchange Commission, or SEC, including our Annual Report on Form 10-K, and will be contained in all subsequent periodic filings we make with the SEC. These documents identify in detail important risk factors that could cause our actual performance to differ materially from current expectations. Forward looking statements include the overall impact of the Novel Coronavirus Disease 2019 (COVID-19) on the Company, its results of operations, liquidity and financial condition (including any estimates of the impact on these items), the rate and consistency with which dental and other practices resume or maintain normal operations in the United States and internationally, expectations regarding personal protective equipment (“PPE”) and COVID-19 related product sales and inventory levels, whether additional resurgences or variants of the virus will adversely impact the resumption of normal operations, whether supply chain disruptions will adversely impact our business, the impact of integration and restructuring programs as well as of any future acquisitions, general economic conditions including exchange rates, inflation and recession, and more generally current expectations regarding performance in current and future periods. Forward looking statements also include the (i) ability of the Company to have continued access to a variety of COVID-19 test types, expectations regarding COVID-19 test sales, demand and inventory levels, as well as the efficacy or relative efficacy of the test results given that the test efficacy has not been, or will not have been, independently verified under normal FDA procedures, and (ii) potential for the Company to distribute the COVID-19 vaccines and ancillary supplies.
Risk factors and uncertainties that could cause actual results to differ materially from current and historical results include, but are not limited to: risks associated with COVID-19 and any variants thereof, as well as other disease outbreaks, epidemics, pandemics, or similar wide-spread public health concerns and other natural disasters; our dependence on third parties for the manufacture and supply of our products; our ability to develop or acquire and maintain and protect new products (particularly technology products) and technologies that achieve market acceptance with acceptable margins; transitional challenges associated with acquisitions, dispositions and joint ventures, including the failure to achieve anticipated synergies/benefits; financial and tax risks associated with acquisitions, dispositions and joint ventures; certain provisions in our governing documents that may discourage third-party acquisitions of us; effects of a highly competitive (including, without limitation, competition from third-party online commerce sites) and consolidating market; the repeal or judicial prohibition on implementation of the Affordable Care Act; changes in the health care industry; risks from expansion of customer purchasing power and multi-tiered costing structures; increases in shipping costs for our products or other service issues with our third-party shippers; general global and domestic macroeconomic and political conditions, including inflation, deflation, recession, fluctuations in energy pricing and the value of the U.S. dollar as compared to foreign currencies and changes to other economic indicators, international trade agreements, potential trade barriers and terrorism; failure to comply with existing and future regulatory requirements; risks associated with the EU Medical Device Regulation; failure to comply with laws and regulations relating to health care fraud or other laws and regulations; failure to comply with laws and regulations relating to the collection, storage and processing of sensitive personal information or standards in electronic health records or transmissions; changes in tax legislation; risks related to product liability, intellectual property and other claims; litigation risks; new or unanticipated litigation developments and the status of litigation matters; risks associated with customs policies or legislative import restrictions; cyberattacks or other privacy or data security breaches; risks associated with our global operations; our dependence on our senior management, employee hiring and retention, and our relationships with customers, suppliers and manufacturers; and disruptions in financial markets. The order in which these factors appear should not be construed to indicate their relative importance or priority.
We caution that these factors may not be exhaustive and that many of these factors are beyond our ability to control or predict. Accordingly, any forward-looking statements contained herein should not be relied upon as a prediction of actual results. We undertake no duty and have no obligation to update forward-looking statements except as required by law.
