Henry Schein
(Nasdaq:HSIC)
today announced it would acquire dental implant manufacturer SIN Implant System from Southern Cross Group, an independent private equity fund manager focused in Latin America.
The financial details of the deal were not disclosed. SIN is a growing dental implant manufacturer and provider in Brazil. The acquisition would mark Henry Schein’s entry into Brazil’s dental market.
“The acquisition of SIN represents the natural progression of our BOLD+1 Strategy to expand our fast-growing dental specialties businesses, where we have a proven track record of successful acquisitions resulting in profitable growth in addition to our internal growth,” CEO Stanley Bergman said in a news release. “We are delighted to partner with SIN and believe that through our combined resources, we will be well-positioned to address the growing demand for implants and bone regeneration products in both the developed and emerging markets. Brazil is one of the fastest-growing markets in the world for dental implants due to an increasing awareness of the importance of oral health, coupled with a large aging population.”
According to the company, São Paulo, Brazil-based SIN had sales of approximately $61 million. It manufactures an extensive line of products to perform dental implant procedures and is focused on advancing the development of value-priced dental implants. The company recently expanded the distribution of its products into the U.S. and other international markets.
“By joining forces with Henry Schein, a world leader in dental products and related services, we will accelerate our growth in Brazil as well as advance our global expansion,” said Felipe Leonard, president of SIN. “The SIN team is inspired by the Henry Schein culture that we share and which supports sustainability and social responsibility. We look forward to a bright future together, full of opportunities to help our customers advance the practice of implant dentistry by delivering leading technology with a human touch.”
The transaction is subject to approval by Brazil’s Administrative Council for Economic Defense and is expected to close in the latter half of 2023. Henry Schein anticipates the transaction to be slightly dilutive to the company’s 2023 non-GAAP earnings per share, primarily due to non-cash acquisition accounting adjustments for inventory, and to be accretive thereafter.
Upon the transaction’s closing, SIN will become a part of Henry Schein’s global oral reconstruction group. Leonard will continue to lead the company once the acquisition is completed.
“SIN’s portfolio of solutions is an excellent complement to our existing offering of oral reconstruction products and services,” said René Willi, CEO of Henry Schein’s global oral reconstruction group. “In addition, the Henry Schein and SIN teams share a mutual commitment to offer customers tooth replacement solutions that are evidence-based and scientifically supported to help to improve the quality of life for patients. We look forward to welcoming the SIN Implant System team to Henry Schein.”