MELVILLE, N.Y. - Henry Schein , Inc. (NASDAQ:HSIC), a global provider of healthcare solutions, announced today the completion of its acquisition of TriMed, Inc., a company specializing in orthopedic treatment solutions for extremities. This move is set to bolster Henry Schein’s offerings in the surgical space and enhance its relationship with Integrated Delivery Networks (IDNs) and Ambulatory Surgery Center (ASC) customers.
The transaction, which was initially agreed upon on December 20, 2023, is expected to be neutral to Henry Schein's non-GAAP earnings per share for 2024 and accretive in the following years. TriMed, headquartered in Santa Clarita, CA, reported net sales of approximately $52 million in 2023. Financial details of the acquisition have not been disclosed.
Stanley M. Bergman, Chairman of the Board and Chief Executive Officer of Henry Schein, expressed the company's commitment to meeting the needs of healthcare professionals in the orthopedic market. He stated that the integration of TriMed's established presence would expand their product offerings and allow them to provide comprehensive solutions.
TriMed's founders, David Medoff and Robert Medoff, MD, will continue to be part of the management team, bringing their extensive experience in product development and commercial relationships to the table.
Henry Schein, Inc., a FORTUNE 500 company and a member of the S&P 500® index, has a history of consistent growth, with sales reaching $12.3 billion in 2023. The company prides itself on its network of more than 25,000 team members worldwide, offering over 300 solutions to improve operational success and clinical outcomes for more than a million customers globally.
The acquisition is part of Henry Schein's strategic expansion in the high-growth extremities market and reflects the company's ongoing efforts to enhance its product portfolio and services in the healthcare sector. This information is based on a press release statement from Henry Schein, Inc.
InvestingPro Insights
Following the recent acquisition of TriMed, Inc., Henry Schein, Inc. (NASDAQ:HSIC) continues to demonstrate a proactive approach to growth within the healthcare solutions sector. With a robust market capitalization of $9.44 billion, the company is a significant player in the Healthcare Providers & Services industry. The management's strategy of aggressive share buybacks, as noted in one of the InvestingPro Tips, underscores confidence in the company's value proposition and future prospects.
InvestingPro data reveals a Price to Earnings (P/E) ratio of 19.81 based on the last twelve months as of Q4 2023, which is relatively moderate when considering the company's position in the market. Additionally, the company's profitability is evident with a Gross Profit Margin of 31.29% for the same period, supporting the InvestingPro Tip that analysts predict Henry Schein will be profitable this year. This profitability is also reflected in the company's revenue, which stands at $12.34 billion for the last twelve months as of Q4 2023.
Despite a challenging environment indicated by a slight revenue decline of 2.44% over the last twelve months as of Q4 2023, Henry Schein's strategic acquisitions like that of TriMed are set to enhance its market offerings and could potentially catalyze future revenue growth. It's also important to note that the company does not pay a dividend, which could be a strategic decision to reinvest earnings back into the company for further expansion and acquisition-related activities.
For readers interested in a deeper dive into Henry Schein's financials and strategic positioning, InvestingPro offers additional insights and metrics. There are 6 more InvestingPro Tips available for Henry Schein, which can be accessed through the dedicated link: https://www.investing.com/pro/HSIC. To enhance your experience, use the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription.
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