Henry Schein announced the acquisition of a majority ownership interest in Large Practice Sales LLC (LPS), a leading advisor to independent dental practices on their sale or partnership with larger general practice and dental specialists. Based in Irving, Texas, LPS reported net sales of approximately $40 million in 2022. Henry Schein expects the LPS transaction to have a neutral impact on 2023 non-GAAP diluted earnings per share and to be accretive thereafter. Financial terms were not disclosed.
Stanley M. Bergman, chairman of the board and CEO of Henry Schein, Inc., said, “LPS is complementary to our existing Dental Practice Transition business and our commitment to providing value-added services to our customers. For many years, we have had a successful practice transitions group dedicated to assisting smaller and mid-sized dental practices. By combining our expertise, we can effectively meet the needs of a broader range of dental professionals and ensure their success throughout the transition process.”
Co-founders Chip Fichtner and Matt Wilkins will be joining Henry Schein from LPS. Mr. Fichtner will remain as head of development, and Mr. Wilkins will continue in his role of head of operations and transaction execution. Both co-founders will hold a minority ownership interest in the business, along with other key members of LPS’s management team.
Mr. Fichtner expressed his optimism about the partnership, stating, “Henry Schein is the premier brand within the U.S. dental profession, with widespread recognition among general practice dentists and specialty practitioners alike. LPS has enjoyed rapid growth since our inception seven years ago, and this combination with Henry Schein is the logical next step to accelerate our reach and enhance our mutual success.”
Mr. Wilkins added, “We pride ourselves on bringing creativity to the table in structuring win-win solutions, offering dentists the flexibility to continue leading their practice, retain an equity stake in their business, and maintain their practice’s brand, culture, and autonomy. We typically represent dental professionals eager for a strategic partnership to help grow and scale their practices. This shared commitment to customer success tightly aligns LPS and Henry Schein.”
Jefferies LLC served as the financial advisor to LPS.
About Henry Schein, Inc.
Henry Schein, Inc. (Nasdaq: HSIC) is a solutions company for health care professionals powered by a network of people and technology. With more than 22,000 Team Schein Members worldwide, the company’s network of trusted advisors provides more than 1 million customers globally with more than 300 valued solutions that help improve operational success and clinical outcomes. Our business, clinical, technology, and supply chain solutions help office-based dental and medical practitioners work more efficiently so they can provide quality care more effectively.
These solutions also support dental laboratories, government and institutional health care clinics, as well as other alternate care sites.
Henry Schein operates through a centralized and automated distribution network, with a selection of more than 300,000 branded products and Henry Schein private-brand products in our distribution centers.
A FORTUNE 500 Company and a member of the S&P 500 index, Henry Schein is headquartered in Melville, N.Y., and has operations or affiliates in 32 countries and territories. The Company’s sales reached $12.6 billion in 2022, and have grown at a compound annual rate of approximately 12.1 percent since Henry Schein became a public company in 1995.
For more information, visit Henry Schein at www.henryschein.com, Facebook.com/HenrySchein, Instagram.com/HenrySchein, and Twitter.com/HenrySchein and www.LargePracticeSales.com.
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