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Schein to acquire stake in implant maker

A Henry Schein warehouse in Denver, Pa. The

A Henry Schein warehouse in Denver, Pa. The health care product giant Tuesday took a majority stake in an Birmingham, Ala., maker of dental implants. (Credit: Handout)

Health care product giant Henry Schein Inc. Tuesday took another bite into the dental market with a deal to take a majority stake in an Birmingham, Ala., maker of implants.

Financial terms of the deal with BioHorizons, which generates about $115 million in annual revenue, were not disclosed.

Under the agreement, Melville-based Schein would loan $145 million to BioHorizons to fund a distribution to shareholders followed by an equity investment for 60 percent of the company’s shares. BioHorizons will continue to operate as a separate company.

The deal fits Schein’s strategy of expanding its dental business and Baird Equity Research analyst Jeff Johnson estimated that the transaction would make Schein the world’s No. 5 dental implant maker.

In a statement, Schein said it expects the deal to trim earning per share in 2014 by 3 to 5 cents, but add 3 to 4 cents in 2015.

Don’t expect the deal to be Schein’s last, one analyst said.

ISI Group analyst Michael Cherny said he expects Schein “to maintain a steady pace of M & A” in all its lines.
 

Tags: Henry Schein , dental implants

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