HSIC Completes Investment Deal - Analyst Blog
Henry Schein, Inc
) declared that it has completed its 60% equity investment in
BioHorizons, Inc. HSIC first announced its decision to invest in
BioHorizons, on Nov 26, 2013.
BioHorizon is a U.S.-based manufacturer of advanced dental implant technology and tissue regeneration products that are sold globally. Henry Schein expects the acquisition to be dilutive to its earnings per share by 3-5 cents in 2014 and 3-4 cents in 2015.
Recent investments made by Henry Schein reveal the company's strategic intentions to tap lucrative opportunities in the dental implant market in regions like Europe and the United States. The company seeks to expand its footprint in the dental implant market that is expected to rise to $1.5 billion in 2016 from $1.0 billion in 2012, taking into consideration U.S. and Canada alone.
Alongside increased consumer awareness, and high success rates in implant procedures have helped accelerate growth in this market. Moreover, the new era of digitization has enhanced patient comfort, thus improving the overall dental experience for patients.
Recently, HSIC also forged an agreement to acquire 100% ownership of five businesses operating in three European countries from Arseus NV. Henry Schein is optimistic about such strategic investments that should help it garner a prominent position in the growing dental specialty market. HSIC also has investments in CAMLOG Biotechnologies AG, a leading manufacturer of dental implants in Europe.
Moreover, the investment in BioHorizons provides Henry Schein the chance to strengthen its portfolio in the biologics market, a critical adjunct to the implant market.
Currently, Henry Schein carries a Zacks Rank #3 (Hold). Investors interested in the medical dental supplies industry can look at better-ranked stocks like Align Technology Inc. ( ALGN ), Cardinal Health, Inc . ( CAH ), each carrying a Zacks Rank #1 (Strong Buy) and McKesson Corp. ( MCK ) carrying a Zacks Rank #2 (Buy).
ALIGN TECH INC (ALGN): Free Stock Analysis Report
CARDINAL HEALTH (CAH): Free Stock Analysis Report
HENRY SCHEIN IN (HSIC): Free Stock Analysis Report
MCKESSON CORP (MCK): Free Stock Analysis Report
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