MELVILLE, N.Y., Nov. 26, 2013 /PRNewswire/ -- Henry Schein, Inc.
(NASDAQ: HSIC), the world's largest provider of health care products and
services to office-based dental, animal health and medical
practitioners, announced today plans to make a strategic investment in
dental implant manufacturer BioHorizons, Inc., advancing the Company's
goal of expanding its position in the dental specialty market.
Henry Schein reached an agreement to acquire a 60% interest in
BioHorizons, a U.S.-based manufacturer of advanced dental implants sold
internationally. Under the agreement, BioHorizons, with revenue of
approximately $115 million, will continue to operate as an independent
company. Financial terms of the proposed transaction were not disclosed.
The transaction with BioHorizons involves a two-step process: A
recapitalization through which Henry Schein will lend approximately $145
million to BioHorizons to fund, among other uses, a distribution to
shareholders, which will occur prior to closing, followed by the equity
investment. Pending regulatory approval, Henry Schein expects to
complete the transaction by the end of the year.
The agreement with BioHorizons strengthens Henry Schein's position in
a critical and growing market that also includes the company's
investment in CAMLOG Biotechnologies AG, a leading manufacturer of
implants in Europe. With these two investments, Henry Schein will have
important positions in two of the largest implant markets – the U.S. and
Germany – as well as a growing presence in the rest of the world.
BioHorizons and CAMLOG, which will each operate independently, are
strong brands with unique features and benefits that offer customers a
broad range of treatment options. The investment in BioHorizons also
strengthens Henry Schein's position and product portfolio in the
biologics market, a critical adjunct to the implant market. Henry
Schein offers customers a wide array of the products and services
associated with implant dentistry, thereby providing a complete solution
for the benefit of the dental practice.
"Henry Schein's strategy includes advancing our position in dental
specialty markets, an integral part of which is to support those
practitioners who perform oral surgery involving implants," said Stanley
M. Bergman, Chairman of the Board and Chief Executive Officer of Henry
Schein. "Implant dentistry is a critical element of the profession's
transition to digital dentistry. More and more abutments for implants
are being digitally designed and fabricated, which increase patient
comfort and esthetics and reduce patient visits. Customer demand for
implants and the associated materials are expected to increase as
digital processes are adopted and the dental experience for the patient
is enhanced."
The value of the global implant market is expected to reach
approximately $4.2 billion in 2016, up from approximately $3 billion in
2012. In the U.S. and Canada, the market is expected to reach $1.5
billion in 2016, up from approximately $1 billion in 2012.
Based in Birmingham, Alabama, BioHorizons employs approximately 325
people and markets its products in 85 markets. Its revenue has been
growing on average by more than 10 percent annually, and more than half
of that revenue is derived in the U.S. Founded in 1995, the company
offers a broad spectrum of innovative products, including implants
featuring its proprietary Laser-Lok® microchannel surface technology,
designed to minimize bone loss and maximize esthetics.
"On behalf of the shareholders and management of BioHorizons, we are
delighted with this partnership, which combines BioHorizons' record of
global growth and clinical excellence in the implant dentistry field
with Henry Schein's strengths worldwide," said Mortimer Berkowitz III,
Chairman of BioHorizons. "Having known the Henry Schein management team
for some years, we look forward to working closely with them to build
the business into a global leadership position by delivering outstanding
patient results through differentiated products."
BioHorizons benefits from a long-serving management team. The company
will continue to be led by its President and CEO, Steve Boggan, who has
held that position since 1999; Todd Strong, Executive Vice President
and Chief Operating Officer, who joined BioHorizons at its founding in
1995; and David Wall, Executive Vice President and Chief Financial
Officer. BioHorizons will be a part of Henry Schein's Global Dental
Surgical Group, and its revenue will be reported as part of the
Company's Global Dental Group.
"We believe our partnership with Henry Schein will further enhance
our growth prospects in the implant and biologics market," said Mr.
Boggan. "The strength of Henry Schein and its deep relationships in the
marketplace create an ideal combination. We are looking forward to
advancing the goals of both organizations, and are very pleased to be
part of Team Schein."
2014 Guidance
Henry Schein expects the BioHorizons transaction to be dilutive to
earnings per share in 2014 by $0.03 to $0.05, and accretive to earnings
per share in 2015 by $0.03 to $0.04. The 2014 dilution is primarily due
to a one-time inventory revaluation as required under U.S. GAAP
accounting rules for business combinations. Together with the previously
announced definitive agreement to acquire 80% of Poland's Medivet S.A.,
the Company has revised its 2014 financial guidance, as follows:
- For 2014, the Company now expects diluted EPS attributable to Henry
Schein, Inc. to be $5.32 to $5.42, which represents growth of 9% to 11%
compared with the midpoint of the 2013 guidance range.
- Guidance for 2014 diluted EPS attributable to Henry Schein, Inc. is
for current continuing operations as well as completed or previously
announced acquisitions, and does not include the impact of potential
future acquisitions, if any.
About BioHorizons
BioHorizons is a leader in advanced dental implant technologies and
tissue regeneration products in the dental implant industry. The
company, based in Birmingham, Alabama, offers a broad spectrum of
products for the replacement of missing teeth including dental implants,
restorative and laboratory components, soft and hard tissue biologic
products, and surgical planning software. BioHorizons' unique dental
implant designs are recognized for intuitive design, excellent primary
stability, and high-end, esthetic outcomes through the use of
BioHorizons' proprietary Laser-Lok® microchannel surface technology.
With 25 years of research and 30 published studies, Laser-Lok has been
shown to uniquely achieve both bone and soft tissue attachment for
long-term tissue maintenance. The company has six international
subsidiaries and more than 50 distributors around the world. For more
information, visit
www.biohorizons.com.
About Henry Schein, Inc.
Henry Schein, Inc. is the world's largest provider of health care
products and services to office-based dental, animal health and medical
practitioners. The Company also serves dental laboratories, government
and institutional health care clinics, and other alternate care sites. A
Fortune 500® Company and a member of the NASDAQ 100® Index, Henry
Schein employs nearly 16,000 Team Schein Members and serves more than
775,000 customers.
The Company offers a comprehensive selection of products and
services, including value-added solutions for operating efficient
practices and delivering high-quality care. Henry Schein operates
through a centralized and automated distribution network, with a
selection of more than 96,000 branded products and Henry Schein
private-brand products in stock, as well as more than 110,000 additional
products available as special-order items. The Company also offers its
customers exclusive, innovative technology solutions, including practice
management software and e-commerce solutions, as well as a broad range
of financial services.
Headquartered in Melville, N.Y., Henry Schein has operations or
affiliates in 25 countries. The Company's sales reached a record $8.9
billion in 2012, and have grown at a compound annual rate of 17% since
Henry Schein became a public company in 1995. For more information,
visit the Henry Schein Web site at
www.henryschein.com.
