Henry Schein Inc. has accomplished a US$250-million strategic funding from KKR, first introduced in January. The funding makes KKR the most important non-index fund shareholder in Henry Schein, with a 12 per cent possession stake.
New York-based Henry Schein, the world’s largest supplier of well being care options to office-based dental and medical practitioners, mentioned Friday that the non-public fairness agency now formally holds about 12 per cent of its widespread shares.
The deal additionally marks the appointment of two KKR-affiliated executives to Henry Schein’s board of administrators as impartial administrators: Max Lin, companion at KKR and chief of its well being care business workforce within the Americas, and William Okay. (Dan) Daniel, government advisor to KKR and former government vice-president of Danaher Company. Lin joined the board on Could 2, whereas Daniel’s appointment was confirmed upon closing of the transaction.
“We’re happy to welcome Max and Dan to the board as we embark on this thrilling subsequent chapter for Henry Schein,” mentioned Stanley M. Bergman, chairman and CEO. “Their deep expertise in well being care, operations and strategic development can be invaluable as we proceed executing on our BOLD+1 technique and creating long-term worth for our stakeholders.”
Along with Lin and Daniel, Henry Schein additionally just lately appointed Robert J. Hombach, former CFO and COO of Baxalta Inc., as an impartial director.
As a part of the settlement, KKR has the suitable to buy further shares on the open market, doubtlessly growing its stake to 14.9 per cent.
Q1 monetary outcomes
For the primary quarter of 2025, Henry Schein reported whole internet gross sales of US$3.2 billion, almost flat in comparison with the identical interval final 12 months. On a relentless foreign money foundation, internet gross sales grew 1.4 per cent, or 2.0 per cent excluding the impression of PPE and COVID-19 check kits.
Adjusted EBITDA for the quarter reached US$259 million, up barely from US$255 million in Q1 2024.
Regardless of this, income got here in 1.8 per cent under analyst expectations, and earnings per share (EPS) missed estimates by 2.7 per cent. The corporate reported GAAP diluted EPS of $0.88 (a 22 per cent improve 12 months over 12 months) and non-GAAP diluted EPS of $1.15 (up 4.5 per cent).
Wanting forward, Henry Schein reaffirmed its full-year steerage for non-GAAP diluted EPS of $4.80 to $4.94 and expects adjusted EBITDA development within the mid-single digits. The corporate forecasts common annual income development of three.5 per cent over the subsequent three years, in comparison with the U.S. well being care business common of seven.0 per cent.
