announced today that it will acquire a majority stake in homecare medical products supplier Shield Healthcare.
Henry Schein officials see the move as bolstering the company’s commitment to facilitating a continuum-of-care delivery model.
Shield Healthcare (Valencia, California) operates in the homecare medical supplies space, posting net sales of around $180 million in 2022. The acquisition will expand the homecare medical products portfolio of Henry Schein, enhancing its ability to cater to an aging U.S. population that is increasingly opting for home-based care.
This latest acquisition builds upon Henry Schein’s 2021 purchase of Prism Medical Products, as the company continues to invest in the homecare medical supplies market.
The agreement with Shield Healthcare is expected to bring Henry Schein’s homecare medical product platform’s annual revenue to over $300 million. The amount is nearly 7% of Henry Schein’s $4.45 billion in total revenue in 2022. The company’s homecare products catalog is set to include a wide array of products, such as incontinence, urology, ostomy, enteral nutrition, advanced wound and diabetes supplies, as well as continuous glucose monitoring devices.
This transaction comes as part of a strategic plan to expand Henry Schein’s existing medical business and deliver these products directly to patients in their homes.
“As the U.S. population ages and care increasingly moves into the home, Henry Schein is meeting this trend by enhancing our homecare medical products offering,” CEO Stanley M. Bergman said in a news release. “We are delighted to expand our presence in delivering medical products directly to patients through Shield Healthcare. Together, we share an unwavering commitment to customer satisfaction.”
The financial details of the deal have not been revealed, but it is expected to be neutral to Henry Schein’s non-GAAP 2023 earnings per share and accretive thereafter. The acquisition is still subject to standard closing conditions and should be finalized in the third quarter of 2023.
The current owners of Shield Healthcare, which includes management team members, will retain a minority ownership position in the company post-acquisition.