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Henry Schein (HSIC) Inks Deal to Acquire Midway Dental Supply
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Henry Schein, Inc. (HSIC - Free Report) recently acquired Michigan-based full-service dental distributor Midway Dental Supply, which caters to dental offices and dental laboratories throughout the Midwestern United States. The transaction involves a 100% buyout of Midway Dental. It is expected to be modestly dilutive to Henry Schein’s earnings per share in fiscal 2022 and increasingly accretive thereafter. However, the financial terms of the acquisition deal were kept under wraps.
Per Henry Schein’s management, Midway Dental has developed an excellent reputation in the industry for the past 35 years. Henry Schein’s commitment to offering products and services that customers can rely on to work more efficiently and deliver more effective, high-quality patient care is in line with Midway Dental’s vision to establish a nationwide footprint.
Strategic Benefits of the Buyout
Under the acquisition deal, Midway Dental’s comprehensive portfolio of dental consumable merchandise, equipment, services and education products will be immediately consolidated into Henry Schein’s U.S. Dental business. Henry Schein’s efforts to deliver customized solutions and technology-driven products and services to help its dental customers address patients’ needs will be furthered by the integration of Midway Dental’s sales and service team with the former’s network of trusted advisors.
Image Source: Zacks Investment Research
In addition, Midway Dental will have access to new capabilities, such as a broader portfolio of solutions, to better serve its approximately 7,000 customers and offer new career opportunities for its employees. After the integration, Midway Dental’s customers would gain from the wide range of Henry Schein branded products and the latest digital technologies modernizing dental practices.
Industry Prospects
Per a report by Research and Markets, the dental market is expected to see a CAGR of 8.1% from 2021 to 2028. Factors such as the growing prevalence of dental diseases, rising demand for dental cosmetic procedures and technological advancements can be attributable to market growth.
Given the substantial market prospects, Henry Schein’s latest buyout seems well-timed.
Other Notable Developments
Henry Schein engaged in a number of significant developments in July 2022.
The company’s joint venture, Henry Schein One, announced that Jarvis Analytics was selected by Southern Dental Alliance (SDA) for use across general and pediatric dentistry operations. Jarvis Analytics will serve as the data analytics platform for each of SDA's 50 practices to facilitate the normalization and aggregation of data. This collaboration will equip SDA with the capacity to aggregate and analyze disparate data sources across locations to enhance reporting, decision making and performance.
Henry Schein One’s market-leading solution, Dentrix Ascend, was also selected by Elite Dental Partners for use across 96 practice locations. This cloud-based practice management system will help improve visibility and ease management to advance high-quality patient care and service excellence. In addition, the dental support organization selected IT solutions and infrastructure support from Henry Schein One’s TechCentral and executed Henry Schein One’s ePrescribe online prescription services.
Share Price Performance
The stock has outperformed its industry in the past year. The stock has lost 4.2% against the industry's 13.6% decline.
Zacks Rank and Key Picks
Currently, Henry Schein carries a Zacks Rank #3 (Hold).
A few better-ranked stocks in the broader medical space that investors can consider are AMN Healthcare Services, Inc. (AMN - Free Report) , Patterson Companies, Inc. (PDCO - Free Report) and McKesson Corporation (MCK - Free Report) .
AMN Healthcare has a long-term earnings growth rate of 3.2%. The company surpassed earnings estimates in the trailing four quarters, delivering a surprise of 15.7%, on average. It currently flaunts a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
AMN Healthcare has outperformed its industry in the past year. AMN has lost 7.8% against the industry’s 36.4% fall.
Patterson Companies has an estimated long-term growth rate of 7.9%. The company’s earnings surpassed estimates in all the trailing four quarters, the average beat being 16.5%. It currently flaunts a Zacks Rank #2 (Buy).
Patterson Companies has outperformed its industry in the past year. PDCO lost 6.1% compared with the industry’s 13.6% fall in the past year.
McKesson has an estimated long-term growth rate of 9.9%. The company surpassed earnings estimates in the trailing three quarters and missed in one, delivering a surprise of 13%, on average. It currently carries a Zacks Rank #2.
McKesson has outperformed its industry in the past year. MCK has gained 79.3% against the industry’s 13.6% fall.
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Henry Schein (HSIC) Inks Deal to Acquire Midway Dental Supply
Henry Schein, Inc. (HSIC - Free Report) recently acquired Michigan-based full-service dental distributor Midway Dental Supply, which caters to dental offices and dental laboratories throughout the Midwestern United States. The transaction involves a 100% buyout of Midway Dental. It is expected to be modestly dilutive to Henry Schein’s earnings per share in fiscal 2022 and increasingly accretive thereafter. However, the financial terms of the acquisition deal were kept under wraps.
Per Henry Schein’s management, Midway Dental has developed an excellent reputation in the industry for the past 35 years. Henry Schein’s commitment to offering products and services that customers can rely on to work more efficiently and deliver more effective, high-quality patient care is in line with Midway Dental’s vision to establish a nationwide footprint.
Strategic Benefits of the Buyout
Under the acquisition deal, Midway Dental’s comprehensive portfolio of dental consumable merchandise, equipment, services and education products will be immediately consolidated into Henry Schein’s U.S. Dental business. Henry Schein’s efforts to deliver customized solutions and technology-driven products and services to help its dental customers address patients’ needs will be furthered by the integration of Midway Dental’s sales and service team with the former’s network of trusted advisors.
Image Source: Zacks Investment Research
In addition, Midway Dental will have access to new capabilities, such as a broader portfolio of solutions, to better serve its approximately 7,000 customers and offer new career opportunities for its employees. After the integration, Midway Dental’s customers would gain from the wide range of Henry Schein branded products and the latest digital technologies modernizing dental practices.
Industry Prospects
Per a report by Research and Markets, the dental market is expected to see a CAGR of 8.1% from 2021 to 2028. Factors such as the growing prevalence of dental diseases, rising demand for dental cosmetic procedures and technological advancements can be attributable to market growth.
Given the substantial market prospects, Henry Schein’s latest buyout seems well-timed.
Other Notable Developments
Henry Schein engaged in a number of significant developments in July 2022.
The company’s joint venture, Henry Schein One, announced that Jarvis Analytics was selected by Southern Dental Alliance (SDA) for use across general and pediatric dentistry operations. Jarvis Analytics will serve as the data analytics platform for each of SDA's 50 practices to facilitate the normalization and aggregation of data. This collaboration will equip SDA with the capacity to aggregate and analyze disparate data sources across locations to enhance reporting, decision making and performance.
Henry Schein One’s market-leading solution, Dentrix Ascend, was also selected by Elite Dental Partners for use across 96 practice locations. This cloud-based practice management system will help improve visibility and ease management to advance high-quality patient care and service excellence. In addition, the dental support organization selected IT solutions and infrastructure support from Henry Schein One’s TechCentral and executed Henry Schein One’s ePrescribe online prescription services.
Share Price Performance
The stock has outperformed its industry in the past year. The stock has lost 4.2% against the industry's 13.6% decline.
Zacks Rank and Key Picks
Currently, Henry Schein carries a Zacks Rank #3 (Hold).
A few better-ranked stocks in the broader medical space that investors can consider are AMN Healthcare Services, Inc. (AMN - Free Report) , Patterson Companies, Inc. (PDCO - Free Report) and McKesson Corporation (MCK - Free Report) .
AMN Healthcare has a long-term earnings growth rate of 3.2%. The company surpassed earnings estimates in the trailing four quarters, delivering a surprise of 15.7%, on average. It currently flaunts a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
AMN Healthcare has outperformed its industry in the past year. AMN has lost 7.8% against the industry’s 36.4% fall.
Patterson Companies has an estimated long-term growth rate of 7.9%. The company’s earnings surpassed estimates in all the trailing four quarters, the average beat being 16.5%. It currently flaunts a Zacks Rank #2 (Buy).
Patterson Companies has outperformed its industry in the past year. PDCO lost 6.1% compared with the industry’s 13.6% fall in the past year.
McKesson has an estimated long-term growth rate of 9.9%. The company surpassed earnings estimates in the trailing three quarters and missed in one, delivering a surprise of 13%, on average. It currently carries a Zacks Rank #2.
McKesson has outperformed its industry in the past year. MCK has gained 79.3% against the industry’s 13.6% fall.