Henry Schein Inc. has completed a US$250-million strategic investment from KKR, first announced in January. The investment makes KKR the largest non-index fund shareholder in Henry Schein, with a 12 per cent ownership stake.
New York-based Henry Schein, the world’s largest provider of health care solutions to office-based dental and medical practitioners, said Friday that the private equity firm now officially holds about 12 per cent of its common shares.
The deal also marks the appointment of two KKR-affiliated executives to Henry Schein’s board of directors as independent directors: Max Lin, partner at KKR and leader of its health care industry team in the Americas, and William K. (Dan) Daniel, executive advisor to KKR and former executive vice-president of Danaher Corporation. Lin joined the board on May 2, while Daniel’s appointment was confirmed upon closing of the transaction.
“We are pleased to welcome Max and Dan to the board as we embark on this exciting next chapter for Henry Schein,” said Stanley M. Bergman, chairman and CEO. “Their deep experience in health care, operations and strategic growth will be invaluable as we continue executing on our BOLD+1 strategy and creating long-term value for our stakeholders.”
In addition to Lin and Daniel, Henry Schein also recently appointed Robert J. Hombach, former CFO and COO of Baxalta Inc., as an independent director.
As part of the agreement, KKR has the right to purchase additional shares on the open market, potentially increasing its stake to 14.9 per cent.
Q1 financial results
For the first quarter of 2025, Henry Schein reported total net sales of US$3.2 billion, nearly flat compared to the same period last year. On a constant currency basis, net sales grew 1.4 per cent, or 2.0 per cent excluding the impact of PPE and COVID-19 test kits.
Adjusted EBITDA for the quarter reached US$259 million, up slightly from US$255 million in Q1 2024.
Despite this, revenue came in 1.8 per cent below analyst expectations, and earnings per share (EPS) missed estimates by 2.7 per cent. The company reported GAAP diluted EPS of $0.88 (a 22 per cent increase year over year) and non-GAAP diluted EPS of $1.15 (up 4.5 per cent).
Looking ahead, Henry Schein reaffirmed its full-year guidance for non-GAAP diluted EPS of $4.80 to $4.94 and expects adjusted EBITDA growth in the mid-single digits. The company forecasts average annual revenue growth of 3.5 per cent over the next three years, compared to the U.S. health care industry average of 7.0 per cent.
