Henry Schein, Inc. (Nasdaq: HSIC), a global leader in health care solutions for dental and medical practitioners, announced today a strategic investment by global investment firm KKR, alongside several significant changes to its board and preliminary financial results for 2024. The investment is part of Henry Schein’s ongoing efforts to drive long-term growth and create additional shareholder value.
KKR will invest an additional $250 million in Henry Schein, acquiring a 12% stake in the company’s common stock. This brings KKR’s total investment to a key position as the largest non-index fund shareholder in Henry Schein, signaling confidence in the company’s growth strategy. KKR will also have the option to increase its equity stake to 14.9% through future open market purchases.
The collaboration will focus on exploring value creation opportunities across several key areas, including strategic growth, operational excellence, capital allocation, and employee engagement. As part of the deal, KKR executives Max Lin and William K. “Dan” Daniel will join Henry Schein’s board as independent directors, bringing extensive expertise in healthcare and business management.
Lin, who leads KKR’s Health Care industry team, will serve as vice chair of the Nominating and Governance Committee and join the Strategic Advisory Committee. Daniel, a former executive at Danaher Corporation, will also join the Compensation and Strategic Advisory committees.
In addition, Henry Schein has appointed Robert J. Hombach, former CFO of Baxalta Inc., to the board as an independent director. Hombach, who has a strong background in finance and operations, will join the company’s Strategic Advisory Committee.
With these appointments, the company’s board will temporarily expand to 16 directors, eventually reducing to 14 following the 2025 Annual Meeting.
Stanley M. Bergman, chairman of the Board and CEO of Henry Schein, expressed his enthusiasm about the partnership: “Our Board and management have great respect for KKR, including its partnership-oriented approach and experience in supporting value creation across its investments. This is a testament to the hard work of Team Schein to advance our leadership as a solutions-driven innovator for health care professionals.”
Lin of KKR echoed this sentiment: “We have long admired Stan and the broader Henry Schein organization. KKR is excited to support Henry Schein in its mission of enabling dental and medical practitioners and believe the company has tremendous growth potential. We look forward to working with the management team on strategic and operational initiatives to drive value for all of Henry Schein’s stakeholders.”
Hombach also shared his optimism, saying, “Henry Schein is an exceptional company with a well-earned reputation for innovation, quality relationships with customers, and a talented team. I am honored to join the Henry Schein Board and look forward to contributing to creating significant value for all of Henry Schein's stakeholders in the years ahead.”
In addition to the strategic investment news, Henry Schein provided preliminary unaudited financial results for the fourth quarter and full year of 2024. The company reported:
- Q4 2024 Revenue: $3.2 billion
- Full-Year 2024 Revenue: $12.7 billion
- Q4 2024 GAAP Net Income$94 million, or $0.74 per diluted share
- Full-Year 2024 GAAP Net Income: $390 million, or $3.05 per diluted share
- Q4 2024 Non-GAAP Net Income: $149 million, or $1.19 per diluted share
- Full-Year 2024 Non-GAAP Net Income: $605 million, or $4.74 per diluted share
Additionally, the company reported preliminary Adjusted EBITDA of $270 million for Q4, with full-year Adjusted EBITDA totaling $1.061 billion. Operating cash flow for the fourth quarter was $204 million, bringing total operating cash flow for the year to $848 million.
Looking ahead to 2025, Henry Schein forecasted low to mid-single-digit growth in non-GAAP diluted EPS and Adjusted EBITDA. The company’s guidance assumes modest improvements in the dental and medical markets, aided by strategic initiatives and new investments.
The company also announced a $500 million increase in its share repurchase program, with $250 million set to be executed through accelerated share repurchases. This move is intended to provide additional value to shareholders.
Henry Schein intends to release its full fourth-quarter and 2024 results before the stock market opens on February 25, 2025. A live webcast of the earnings conference call will follow at 8:00 a.m. Eastern Time.
The company’s announcement follows a series of strategic moves designed to enhance its position in the health care solutions market. The partnership with KKR, coupled with the new board appointments and robust financial performance, signals Henry Schein’s continued commitment to delivering innovative solutions and expanding its market reach in the years ahead.
Henry Schein is a global provider of health care solutions for office-based dental and medical practitioners. With a network of more than 26,000 employees worldwide, the company delivers over 300 solutions designed to improve operational success and clinical outcomes. Henry Schein serves over 1 million customers globally through its comprehensive distribution network and range of trusted products and services.
KKR is a leading global investment firm known for its alternative asset management and capital markets solutions. KKR works with portfolio companies to support their growth and value creation, focusing on long-term success and sustainable returns.
For more information about Henry Schein and KKR, visit their respective websites at www.henryschein.com and www.kkr.com.
