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Henry Schein, Inc. recently announced the completion of the acquisition of a majority stake in TriMed, Inc.New York-based Henry Schein announced the acquisition last December. The addition of TriMed strengthens Henry Schein's extremities portfolio. TriMed, based in Santa Clarita, California, manufactures orthopedic devices for the lower extremities (foot and ankle) and upper extremities (hand and wrist).

Data shows that Henry Schein is a nearly century-old medical device company.In 1997, the company acquired Sullivan Dental Products for $318 million, becoming the world's largest distributor of dental equipment and supplies.In the subsequent 25 years, the company acquired more than 40 additional businesses, continuously solidifying its position as the "leader" in the industry. This acquisition aims to complement Henry Schein's dental consumables and equipment business while advancing the company’s "BOLD+1" strategy.

On December 22, 2023, the two parties announced that they had signed an agreement, under which Henry Schein will acquire a majority stake in TriMed, Inc.

TriMed, Inc., headquartered in California, reported net sales of approximately $48 million in 2022 and around $52 million in 2023. Henry Schein anticipates that the transaction will remain neutral to non-GAAP earnings per share in 2024, with an increase expected thereafter. The financial terms of the acquisition, including the purchase amount, have not been disclosed at this time.

In addition, Henry Schein has established a strategic partnership with Extremity Medical LLC, an innovative medical device company based in New Jersey that focuses on developing new products for fusion, fixation, and motion preservation in lower extremity and wrist orthopedic treatments.

After the completion of the acquisition, TriMed founder and Chief Commercial Officer David Medoff, along with Medical Advisor Robert Medoff, M.D., will continue as members of the TriMed management team to drive the development of the company’s commercial and medical applications.

Henry Schein CEO Stanley Bergman said in a press release, "Through this new partnership, Henry Schein reinforces our commitment to meeting the evolving needs of customers in the orthopedic market and providing healthcare professionals with the tools they need to deliver excellent patient care. By leveraging TriMed's established business and reputation, we will collectively expand our product offerings and provide our customers with comprehensive orthopedic solutions. We welcome TriMed's new colleagues to the Henry Schein team, and we look forward to achieving success together."

According to reports, "BOLD+1" is one of Henry Schein's strategic plans. This plan emphasizes enhancing the company’s market share and influence in the dental specialty field through acquisitions, mergers, and strategic cooperation. Among them, BOLD refers to business expansion, product innovation, market leadership, and global business development. The “+1” represents adding a new capability or resource through acquisitions and partnerships.

The company believes that through strategic acquisitions and cooperation, it can continuously expand its product line, strengthen market penetration, and provide customers with more and better dental products as well as higher-quality services. This acquisition of SIN has strengthened Henry Schein's dental consumables and equipment business, and over the past 25 years, the company has acquired more than 40 companies of various sizes.

Through these acquisitions, Henry Schein has grown into the world's largest provider of healthcare products and services focused on dental and animal health clinics.In addition to its own brand products, it also offers more than 300,000 branded products, such as BioHorizons, Camlog, Biotech Dental, and medentis medical, covering fields from dental instruments and equipment, medical devices and consumables, pharmaceuticals, digital solutions to medical laboratory equipment and consumables.

With a rich product line, the company has established a strong business network worldwide. Data shows that Henry Schein has subsidiaries in 32 countries and regions globally, serving more than one million dental and medical customers.

Henry Schein, Inc. has nearly a century of history since its establishment in 1932. Initially, the company was a small supplier providing medical supplies to dental clinics in New York, but over time, it gradually expanded and became today's global supplier of medical products and services.

The company proudly stated in its introduction that, as a Fortune 500 company and a member of the S&P 500 Index, its sales have grown at a compound annual growth rate of approximately 12.1% since it went public in 1995, reaching $12.6 billion in 2022.

However, recently, Henry Schein's performance seems to be less than ideal. At the end of February 2024, Henry Schein announced its financial results for the fourth quarter and full year of 2023.In the fourth quarter, Henry Schein, Inc. achieved revenue of $3.017 billion, a year-on-year decrease of 10.5%. Henry Schein, Inc. stated that the decline in revenue was mainly due to last year's cybersecurity incident.Gross margin remained relatively stable, at 30.65% for Q4 and 31.29% for the full year, compared to 29.64% and 30.29% for the same periods last year, representing an overall increase of approximately 1%. The decline in net profit attributable to shareholders was significant, with Q4 profits at $0.18 billion, a decrease of 61.7%, and annual profits at $4.16 billion, a decrease of 22.68%.Full-year revenue for 2023 was $12.339 billion, a decrease of 2.43%, indicating that the decline in Q4 performance was the reason for the full-year results falling short of expectations.

Last year, GlobalData forecasts showed that with the negative impact of the COVID-19 pandemic gradually receding, orthopedic surgeries have fully recovered, and the entire orthopedic device market will reach nearly $50 billion (approximately 365.8 billion RMB). The latest annual reports from the top 10 orthopedic companies show that except for ZimVie, whose performance is declining, the other nine companies are either on an upward trend or remain unchanged, once again confirming GlobalData's optimistic forecast.

Considering last year's decline in performance, as the world's largest dental company, will Henry Schein's acquisition and entry into the orthopedic market help it reverse the trend and maintain rapid growth? As a medical device giant that continues to "buy, buy, buy," what moves will Henry Schein make in the future? In this regard, Instrument Family will continue to follow up.

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