Henry Schein, Inc.
), a leading healthcare products and services distributor, has
been on an acquisition spree over the recent past. The company
has successfully maintained this trend with the latest
acquisition of Calif.-based Maddox Practice Group (MPG), a dental
practice transition group. The financial and other terms of the
deal were not disclosed.
With the acquisition, MPG will become a part of Henry Schein
Professional Practice Transitions (HSPPT) that provides a full
range of dental practice brokerage, practice valuations and
practice transition planning services. This acquisition will
enable Henry Schein to expand its PPT business in Calif., one of
the largest dental markets in the U.S. with around 32,000
Henry Schein is focusing on expansion through acquisitions in
both animal health and dental market, based on its solid cash
balance ($122.1 million at the end of fiscal 2012). Last
December, the company acquired Ireland-based animal health
product distributor, C&M Vetlink. Earlier in October, the
company bought a majority stake in a Canada-based privately-held
dental software company, The Exan Group. Prior to that, in May,
the company entered the Dutch market by acquiring AUV Veterinary
Services, the veterinary products distribution arm of the
Netherlands-based AUV Group.
The recent acquisitions include a global distribution
agreement with Israeli dental technology company ReDent Nova, a
deal with non-invasive monitoring technology for patient care
) to distribute Masimo's Pronto-7 and three other successive
acquisitions namely Ortho Technology, Modern Laboratory Services
Henry Schein continues to drive strong top-line growth and
establish domestic and international footprints in dental, animal
health and medical supply distribution. However, unfavorable
foreign exchange headwinds and a contagion of economic problems
across Europe are likely to undermine its operating results.
Further, softness in the core franchise is a matter of
Nevertheless, we believe that Henry Schein is well poised to
drive growth as its diversified business offers resilience
against macroeconomic problems. The company's performance should
improve with the gradual recovery in the economy.
The stock carries a Zacks Rank #2 (Buy). Other industry stocks
carrying a Zacks Rank #1 are
Medical Action Industries Inc.
Given Imaging Ltd.
GIVEN IMAGING (GIVN): Free Stock Analysis
HENRY SCHEIN IN (HSIC): Free Stock Analysis
MASIMO CORP (MASI): Free Stock Analysis
MEDICAL ACTION (MDCI): Free Stock Analysis
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