September 15, 2021
by Henry Schein, Inc.
Henry Schein, Inc. (Nasdaq: HSIC), the world’s largest provider of health care solutions to office-based dental and medical practitioners, announced today a new organizational structure to accelerate the Company’s strategic goals of enhancing customer experience and operational performance.
The new structure seeks to harness the benefits of consolidating the management of Henry Schein’s Dental and Medical distribution businesses while continuing to increase the Company’s exposure to faster-growing and higher-margin markets through organic growth and acquisitions.
Henry Schein will create two groups to lead the management globally of its Dental and Medical distribution businesses, as follows:
“As part of the continuous operational improvement of Henry Schein, we have been pursuing a strategy called ‘One Distribution’ to more tightly integrate the management of our distribution businesses globally,” said Mr. Stanley M. Bergman, Chairman of the Board and Chief Executive Officer, Henry Schein, Inc. “One Distribution is designed to more fully leverage functions, talent, processes, and systems across Henry Schein’s distribution businesses to enhance our customer experience and maximize efficiency and performance.”
The Company intends to continue to focus on addressing customer needs by expanding its three specialty products and services businesses that participate in higher-growth, higher-margin markets, as follows:
“These three business groups reflect the Company’s long-standing commitment to provide software, specialty products, and services designed to help customers operate more efficient practices and support clinical care, while contributing to the Company’s financial performance,” Mr. Bergman said. “Our customers increasingly rely upon Henry Schein’s comprehensive offering of innovative solutions and services, along with our distribution network, for their success in a digital world. We look forward to continuing to advance the seamless, unified integration of our suite of products and service solutions.”
Jonathan Koch, currently the CEO of Henry Schein’s Global Dental Group, has decided to leave Henry Schein to return to the drug development and commercialization industry from which he joined the Company in 2018.
“We are pleased that Jon will remain on the board of Henry Schein One, the Company’s practice management software and services joint venture with Internet Brands,” Mr. Bergman said. “Under Jon’s leadership, the Global Dental Group and Henry Schein One made significant strides transforming the business in accordance with our strategic plan while adjusting to the challenges resulting from shifting industry dynamics and the pandemic. We wish Jon and his family the very best.
“The organizational changes we announced today reflect the continued development of Henry Schein’s strategy to capitalize on the major trends in health care,” Mr. Bergman said. “These changes are designed to heighten the customer experience and increase efficiency with an integrated offering of products, solutions, and services.”
The Company will continue to report quarterly sales in the categories of Dental, Medical, and Technology and Value-Added Services. The changes announced today will not result in any associated restructuring charges.
About Henry Schein, Inc.
Henry Schein, Inc. (Nasdaq: HSIC) is a solutions company for health care professionals powered by a network of people and technology. With approximately 21,000 Team Schein Members worldwide, the Company’s network of trusted advisors provides more than 1 million customers globally with more than 300 valued solutions that help improve operational success and clinical outcomes. Our Business, Clinical, Technology and Supply Chain solutions help office-based dental and medical practitioners work more efficiently so they can provide quality care more effectively. These solutions also support dental laboratories, government, and institutional health care clinics, as well as other alternate care sites.
Henry Schein operates through a centralized and automated distribution network, with a selection of more than 120,000 branded products and Henry Schein private-brand products in stock, as well as more than 180,000 additional products available as special-order items.
A FORTUNE 500 Company and a member of the S&P 500® index, Henry Schein is headquartered in Melville, N.Y., and has operations or affiliates in 32 countries and territories. The Company’s sales reached $10.1 billion in 2020, and have grown at a compound annual rate of approximately 12 percent since Henry Schein became a public company in 1995.
For more information, visit Henry Schein at www.henryschein.com, Facebook.com/HenrySchein, and @HenrySchein on Twitter.
Cautionary Note Regarding Forward-Looking Statements
In accordance with the “Safe Harbor” provisions of the Private Securities Litigation Reform Act of 1995, we provide the following cautionary remarks regarding important factors that, among others, could cause future results to differ materially from the forward-looking statements, expectations and assumptions expressed or implied herein. All forward-looking statements made by us are subject to risks and uncertainties and are not guarantees of future performance. These forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause our actual results, performance and achievements or industry results to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. These statements are generally identified by the use of such terms as “may,” “could,” “expect,” “intend,” “believe,” “plan,” “estimate,” “forecast,” “project,” “anticipate,” “to be,” “to make” or other comparable terms. Factors that could cause or contribute to such differences include, but are not limited to, those discussed in the documents we file with the Securities and Exchange Commission (SEC), including our Annual Report on Form 10-K. Forward looking statements include the overall impact of the Novel Coronavirus Disease 2019 (COVID-19) on the Company, its results of operations, liquidity, and financial condition (including any estimates of the impact on these items), the rate and consistency with which dental and other practices resume or maintain normal operations in the United States and internationally, expectations regarding personal protective equipment (“PPE”) and COVID-19 related product sales and inventory levels and whether additional resurgences or variants of the virus will adversely impact the resumption of normal operations, the impact of restructuring programs as well as of any announced and future acquisitions, and more generally current expectations regarding performance in current and future periods. Forward looking statements also include the (i) ability of the Company to make additional testing available, the nature of those tests and the number of tests intended to be made available and the timing for availability, the nature of the target market, as well as the efficacy or relative efficacy of the test results given that the test efficacy has not been, or will not have been, independently verified under normal FDA procedures and (ii) potential for the Company to distribute the COVID-19 vaccines and ancillary supplies.
Risk factors and uncertainties that could cause actual results to differ materially from current and historical results include, but are not limited to: risks associated with COVID-19 and any variants thereof, as well as other disease outbreaks, epidemics, pandemics, or similar wide spread public health concerns and other natural disasters or acts of terrorism; our dependence on third parties for the manufacture and supply of our products; our ability to develop or acquire and maintain and protect new products (particularly technology products) and technologies that achieve market acceptance with acceptable margins; transitional challenges associated with acquisitions, dispositions and joint ventures, including the failure to achieve anticipated synergies/benefits; financial and tax risks associated with acquisitions, dispositions and joint ventures; certain provisions in our governing documents that may discourage third-party acquisitions of us; effects of a highly competitive (including, without limitation, competition from third-party online commerce sites) and consolidating market; the potential repeal or judicial prohibition on implementation of the Affordable Care Act; changes in the health care industry; risks from expansion of customer purchasing power and multi-tiered costing structures; increases in shipping costs for our products or other service issues with our third-party shippers; general global macro-economic and political conditions, including international trade agreements and potential trade barriers; failure to comply with existing and future regulatory requirements; risks associated with the EU Medical Device Regulation; failure to comply with laws and regulations relating to health care fraud or other laws and regulations; failure to comply with laws and regulations relating to the confidentiality of sensitive personal information or standards in electronic health records or transmissions; changes in tax legislation; litigation risks; new or unanticipated litigation developments and the status of litigation matters; cyberattacks or other privacy or data security breaches; risks associated with our global operations; our dependence on our senior management, as well as employee hiring and retention; and disruptions in financial markets. The order in which these factors appear should not be construed to indicate their relative importance or priority.
We caution that these factors may not be exhaustive and that many of these factors are beyond our ability to control or predict. Accordingly, any forward-looking statements contained herein should not be relied upon as a prediction of actual results. We undertake no duty and have no obligation to update forward-looking statements.
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