Henry Schein
(Nasdaq: HSIC)
announced today that it made a strategic move to enter the extremities segment of the orthopedic market.
Melville, New York-based Henry Schein plans to enter into the upper and lower extremities market. To execute this strategy, the company signed an agreement to acquire a majority interest in TriMed. TriMed develops orthopedic solutions for the foot and ankle as well as hand and wrist markets.
According to a news release, the Santa Clarita, California-based company brought in sales of about $48 million in 2022. Henry Schein expects to complete the acquisition in the first quarter of 2024. It anticipates a neutral adjusted earnings per share impact in 2024 before an accretive impact thereafter.
On top of the TriMed acquisition, Henry Schein entered into a strategic relationship with Extremity Medical. The medical device company focuses on products for fusion, fixation and motion preservation in lower extremity and wrist treatments. Extremity Medical will operate as a separate, standalone company within this relationship.
Matthew Lyons, Extremity Medical CEO, said the deal enables the company to expand its reach and improve patient care and outcomes. TriMed co-founder and CCO David Medoff said its deal with Henry Schein aims to identify new opportunities to provide care. Medoff expects accelerated growth with Henry Schein.
“Partnering with the TriMed and Extremity teams will provide Henry Schein with a platform to establish ourselves as a leading manufacturer and supplier in the Foot and Ankle as well as Hand and Wrist extremity segments of the orthopedic market,” said Stanley M. Bergman, chair and CEO. “We believe the experienced leadership team that we have assembled is well-positioned to leverage our deep and longstanding relationships with existing integrated delivery network and ambulatory surgery center customers.”
Henry Schein ends busy 2023 with a big move
The move into a new market for Henry Schein marks one of the final noteworthy actions in a year filled with them for the company.
In January, the company purchased a majority stake in Unitas PPO Solutions. Privately-held Unitas works with dental practices to assess their commercial insurance participation.
Then, in April, Henry Schein bought a majority stake in France-based Biotech Dental, a provider of dental implants, clear aligners and digital dental software. Just a month later, the company announced plans to acquire dental implant manufacturer SIN Implant System from Southern Cross Group.
In October, the company made a majority interest acquisition of Shield Healthcare as well.
Despite a number of positives in 2023, the company also ran into difficulties when a cyber gang executed an attack on its e-commerce platform and other applications. The company warned customers and suppliers that their sensitive information may have been exposed in the cyberattack.