In its effort to expand in the fast-growing dental equipment market, Henry Schein Inc. (HSIC), recently acquired Florida-based dental practice transition and brokerage company ADS Florida, LLC and its parent company, Professional Transitions, Inc.
Post acquisition, ADS Florida will become part of Henry Schein’s wholly-owned subsidiary Financial Services, LLC (HSFS). Financial terms of the deal were not disclosed. However, Henry Schein expects the transaction to be neutral to its 2015 earnings per share.
According to Henry Schein, the buyout of ADS Florida will expand the geographical reach of its practice transition offerings to dental practice owners who are looking to buy or sell their practice. Moreover, it will provide a series of other business solutions for health care practitioners like equipment leasing, financing, and patient and practice credit card services.
Henry Schein is optimistic about the addition of ADS Florida and believes that this acquisition, along with the 2014 takeover of California-based The Maddox Practice Group, will enable the company to extend the reach of its dental practice transition and brokerage offering in two of the country's three most populated states.
Henry Schein, as a worldwide distributor of health care products and services, is well positioned to gain from its extensive global foothold and diverse channel mix. Favorable market dynamics is likely to serve as a major growth catalyst, going forward. We are encouraged to note that in spite of the austerity measures in Europe, Henry Schein continues to garner market share in the Dental segment.
Apart from ADS Florida and The Maddox Practice Group, other names on the latest acquisition list includes Iwase Dental in Japan, Dental Speed Graph in Brazil, Sirona Direct and several other investments in France. All of these should drive planned expansion of Henry Schein’s global footprint and help accelerate growth in the long run. .
Currently, Henry Schein retains a Zacks Rank #3 (Hold). Better-ranked stocks in the med/dental-supply industry include Cardinal Health, Inc. (CAH), Merit Medical Systems, Inc. (MMSI) and CR Bard Inc. (BCR). All the three stocks carry a Zacks Rank #2 (Buy).
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