Henry Schein, the world’s largest provider of healthcare solutions to office-based dental and medical practitioners, announced today that it has signed an agreement to acquire a majority ownership position in Shield Healthcare, Inc., a leading supplier of homecare medical products delivered directly to patients in their homes. The addition of Shield Healthcare will advance Henry Schein Medical’s continuum-of-care delivery model.

The Shield Healthcare agreement follows Henry Schein’s 2021 acquisition of Prism Medical Products and represents a further investment in the homecare medical supplies market delivering products directly to patients in their homes. With this acquisition, Henry Schein’s homecare medical products platform will have a revenue base of more than $300m in annualised revenue. The Shield Healthcare transaction enhances Henry Schein’s existing medical business by delivering a wide range of products, including incontinence, urology, ostomy, enteral nutrition, advanced wound, and diabetes supplies, as well as continuous glucose monitoring devices, directly to patients in their homes.

Headquartered in Valencia, Calif., Shield Healthcare had 2022 net sales of approximately $180m. Henry Schein expects the transaction to be neutral to 2023 non-GAAP earnings per share and accretive thereafter. Closing is subject to standard closing conditions and is expected to be completed in the third quarter of 2023. Financial terms were not disclosed.

“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,” said Stanley M. Bergman, Chairman of the Board and Chief Executive Officer of Henry Schein. “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.”

Shield Healthcare will operate as a part of Henry Schein Medical, which reported global sales for 2022 of $4.45bn. The current owners of Shield Healthcare, including members of the company’s management team, will retain the remaining minority ownership position in the company.

Source: Company Press Release