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Henry Schein (HSIC) Acquires Majority Stake in Shield Healthcare
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Henry Schein (HSIC - Free Report) recently completed the acquisition of a majority ownership in Shield Healthcare, Inc. The agreement follows Henry Schein’s 2021 acquisition of Prism Medical Products LLC and represents further investment in the homecare medical supplies market, delivering products directly to patients’ homes.
The addition of Shield Healthcare will advance Henry Schein Medical’s continuum-of-care delivery model. The financial terms of the transaction were not disclosed.
Significance of the Strategic Investment
The trend of home-based care among a growing aging demographic is expected to provide efficiency in the overall healthcare system in the United States. Henry Schein’s broad global footprint has continued to evolve over time through successful organic initiatives and contributions from strategic acquisitions.
Originally announced on Aug 3, 2023, the Shield Healthcare transaction enhances the company’s existing medical business by delivering a wide range of products, including incontinence, urology, ostomy, enteral nutrition, advanced wound and diabetes supplies, as well as continuous glucose monitoring devices, directly to patients’ homes. Through the combination of strong physician relationships, product distribution expertise and corporate brand assortment, HSIC’s Medical business is increasingly well-positioned to compete in the homecare medical supplies market.
More on the News
Valencia, CA-headquartered Shield Healthcare reported net sales of approximately $180 million in 2022. Through this acquisition, Henry Schein’s homecare medical product platform is expected to create an offering of more than $300 million in annualized revenues.
The company expects the transaction to be neutral to 2023 non-GAAP earnings per share and accretive thereafter. The current owners of Shield Healthcare, including members of Henry Schein’s management team, will retain a minority ownership position in the company.
Prioritizing Home-Based Care Through Acquisitions
Henry Schein’s broad global footprint has evolved over time through successful organic initiatives and contributions from strategic acquisitions. The company has already committed more than $1 billion to acquisitions to accelerate the implementation of the 2022-2024 BOLD+1 Strategic Plan — an initiative to add high-growth, high-margin products and services to the company’s offering.
This year, Henry Schein completed large partnerships with Biotech Dental and S.I.N. Implant System and recently announced acquisitions of Shield Healthcare and Large Practice Sales, which are expected to be completed by the third quarter. These transactions have significantly expanded the company’s implant, bone regeneration and clear aligner product portfolio, digital workflow capabilities, presence in distributing products directly to the patients in the homecare arena and value-added services.
The Shield Healthcare agreement is a strong example of Henry Schein’s unwavering commitment to customer satisfaction to advance its position in the homecare arena as a continuum of care. Henry Schein’s homecare medical product offering will now include enteral, ostomy, incontinence, wound care and diabetes products.
Updates From Peers
In the Home Healthcare industry, Henry Schein faces fierce competition from other prominent players. These companies are consistently taking initiatives to expand their footprint on a global scale.
The leading healthcare at-home company, Amedisys (AMED - Free Report) , recently announced the agreement to combine with UnitedHealth Group’s Optum in an all-cash transaction for $101 per share. Backing off from the previously announced merger deal with Option Care Health, Amedisys’ merger with the diversified health services company will accelerate value-based comprehensive care to patients and their families.
DaVita, Inc. (DVA - Free Report) , the renowned global comprehensive kidney care provider, recently teamed up with Adtalem Global Education to address the growing nephrology nursing shortage. Through the collaboration, DaVita and Adtalem will develop online courses and a clinical practicum that delivers hands-on learning experiences to the students of Chamberlain University.
Chemed’s (CHE - Free Report) VITAS healthcare segment consistently banks on the strong adoption of its advanced hospice and palliative care services to its patients through a network of physicians, registered nurses, home health aides, social workers, clergy and volunteers. Post-pandemic, the segment has reported accelerated improvement. During the last reported second quarter, strengthening admissions continued to drive a higher patient census. VITAS’ improving operating metrics are a direct result of the retention and hiring program launched on Jul 1, 2022.
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Henry Schein (HSIC) Acquires Majority Stake in Shield Healthcare
Henry Schein (HSIC - Free Report) recently completed the acquisition of a majority ownership in Shield Healthcare, Inc. The agreement follows Henry Schein’s 2021 acquisition of Prism Medical Products LLC and represents further investment in the homecare medical supplies market, delivering products directly to patients’ homes.
The addition of Shield Healthcare will advance Henry Schein Medical’s continuum-of-care delivery model. The financial terms of the transaction were not disclosed.
Significance of the Strategic Investment
The trend of home-based care among a growing aging demographic is expected to provide efficiency in the overall healthcare system in the United States. Henry Schein’s broad global footprint has continued to evolve over time through successful organic initiatives and contributions from strategic acquisitions.
Originally announced on Aug 3, 2023, the Shield Healthcare transaction enhances the company’s existing medical business by delivering a wide range of products, including incontinence, urology, ostomy, enteral nutrition, advanced wound and diabetes supplies, as well as continuous glucose monitoring devices, directly to patients’ homes. Through the combination of strong physician relationships, product distribution expertise and corporate brand assortment, HSIC’s Medical business is increasingly well-positioned to compete in the homecare medical supplies market.
More on the News
Valencia, CA-headquartered Shield Healthcare reported net sales of approximately $180 million in 2022. Through this acquisition, Henry Schein’s homecare medical product platform is expected to create an offering of more than $300 million in annualized revenues.
The company expects the transaction to be neutral to 2023 non-GAAP earnings per share and accretive thereafter. The current owners of Shield Healthcare, including members of Henry Schein’s management team, will retain a minority ownership position in the company.
Prioritizing Home-Based Care Through Acquisitions
Henry Schein’s broad global footprint has evolved over time through successful organic initiatives and contributions from strategic acquisitions. The company has already committed more than $1 billion to acquisitions to accelerate the implementation of the 2022-2024 BOLD+1 Strategic Plan — an initiative to add high-growth, high-margin products and services to the company’s offering.
This year, Henry Schein completed large partnerships with Biotech Dental and S.I.N. Implant System and recently announced acquisitions of Shield Healthcare and Large Practice Sales, which are expected to be completed by the third quarter. These transactions have significantly expanded the company’s implant, bone regeneration and clear aligner product portfolio, digital workflow capabilities, presence in distributing products directly to the patients in the homecare arena and value-added services.
The Shield Healthcare agreement is a strong example of Henry Schein’s unwavering commitment to customer satisfaction to advance its position in the homecare arena as a continuum of care. Henry Schein’s homecare medical product offering will now include enteral, ostomy, incontinence, wound care and diabetes products.
Updates From Peers
In the Home Healthcare industry, Henry Schein faces fierce competition from other prominent players. These companies are consistently taking initiatives to expand their footprint on a global scale.
The leading healthcare at-home company, Amedisys (AMED - Free Report) , recently announced the agreement to combine with UnitedHealth Group’s Optum in an all-cash transaction for $101 per share. Backing off from the previously announced merger deal with Option Care Health, Amedisys’ merger with the diversified health services company will accelerate value-based comprehensive care to patients and their families.
DaVita, Inc. (DVA - Free Report) , the renowned global comprehensive kidney care provider, recently teamed up with Adtalem Global Education to address the growing nephrology nursing shortage. Through the collaboration, DaVita and Adtalem will develop online courses and a clinical practicum that delivers hands-on learning experiences to the students of Chamberlain University.
Chemed’s (CHE - Free Report) VITAS healthcare segment consistently banks on the strong adoption of its advanced hospice and palliative care services to its patients through a network of physicians, registered nurses, home health aides, social workers, clergy and volunteers. Post-pandemic, the segment has reported accelerated improvement. During the last reported second quarter, strengthening admissions continued to drive a higher patient census. VITAS’ improving operating metrics are a direct result of the retention and hiring program launched on Jul 1, 2022.