Headquartered in New York, KKR & Co. is now the biggest non-index fund shareholder in Henry Schein after taking a 12 per cent stake within the medical and dental provide firm.
The announcement, first reported by The Wall Avenue Journal on Wednesday, offers KKR the choice to extend its stake to virtually 15 per cent. The 2 firms will “collaborate to pursue further alternatives to create shareholder worth and drive the enterprise in its subsequent section of progress,” Henry Schein stated in an announcement.
The principle purpose is to assist Henry Schein, which can also be headquartered in New York and has a market worth of about $9.5 billion, enhance its operations. The corporate reported preliminary income of $3.2 billion within the fourth quarter, bringing whole income to $12.7 billion for the yr.
Two KKR representatives — Max Lin and William Ok. Daniel — will be a part of Henry Schein’s board as unbiased administrators. The corporate additionally appointed Robert J. Hombach, former chief monetary officer of Baxalta Inc., as an unbiased director.
The information comes amid a pattern of elevated non-public fairness funding within the dental sector.
In response to a paper launched in August by the ADA Well being Coverage Institute, the share of dentists affiliated with non-public fairness virtually doubled over six years. The institute’s information confirmed non-public fairness affiliation grew from 6.6 per cent in 2015 to 12.8 per cent in 2021, significantly amongst bigger dental practices and specialists reminiscent of endodontists, oral surgeons, pediatric dentists, orthodontists and prosthodontists.
