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Henry Schein recently announced the completion of the acquisition of a majority stake in TriMed. New York-based Henry Schein announced the acquisition last December. The addition of TriMed strengthens Henry Schein's portfolio of limbs. TriMed, based in Santa Clarita, California, manufactures orthopedic devices for the lower extremity (feet and ankles) and upper extremities (hands and wrists).
According to the data, Han Ruixiang is a medical equipment company established nearly 100 years ago, the company acquired Sullivan Dental Products for $318 million in 1997, and became the world's largest distributor of dental equipment and supplies. In the following 25 years, the company has acquired more than 40 companies one after another, and has continuously consolidated its position as a "leader". The acquisition is intended to complement the company's dental consumables and equipment business while advancing the company's "BOLD+1" strategy.
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Entered the field of orthopedics
On December 22, 2023, the two companies announced that they had signed an agreement for Han Ruixiang to acquire a majority stake in TriMed, Inc.
Headquartered in California, TriMed had net sales of approximately $48 million in 2022 and approximately $52 million in 2023. Henry Schein expects the transaction to be neutral to 2024 non-GAAP earnings per share, which will increase thereafter. Financial terms such as the amount of the acquisition have not been disclosed.
In addition, Henry Schein has a strategic partnership with Extremity Medical LLC, an innovative medical device company based in New Jersey focused on developing new products for fusion, immobilization, and motion preservation in lower extremity and wrist orthopedic treatments.
Following the acquisition, TriMed's founder, Chief Commercial Officer, David Medoff, and Medical Advisor, Robert Medoff, MD, will continue to serve as members of TriMed's management team to drive the company's commercial and medical applications.
"With this new partnership, Stanley Bergman, CEO of Hamrich, reinforces our commitment to meet the evolving needs of customers in the orthopedic market and provide healthcare professionals with the tools they need to provide outstanding care to their patients," Stanley Bergman, CEO of Hamrich, said in a press release. By leveraging TriMed's established business and reputation, we will collectively expand our product range and provide comprehensive orthopaedic solutions to our customers." We welcome our new colleagues from TriMed to the team and we look forward to a successful success." ”
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More than 40 acquisitions in 25 years,
Becoming the "world's largest" through mergers and acquisitions
It is understood that "BOLD+1" is one of Han Ruixiang's strategic plans, which emphasizes the enhancement of the company's market share and influence in the field of dental characteristics through acquisitions, mergers and acquisitions and strategic cooperation. Among them, BOLD refers to expanding the business, innovating products, leading the market and developing the global business. A +1 represents the addition of a new capability or resource through acquisitions and partnerships.
The company believes that through strategic acquisitions and partnerships, it can continue to expand the company's product line, strengthen market penetration, and provide customers with more and better dental products and better services. The acquisition of SIN strengthens Han Ruixiang's dental consumables and equipment business, and the company has acquired more than 40 companies, large and small, in the previous 25 years.
Through these acquisitions, Han Ruixiang has grown into the world's largest clinic-based provider of dental and animal health care products and services, with more than 300,000 branded products in addition to the company's own brand products, such as BioHorizons, Camlog, Biotech Dental and medentis medical, covering everything from dental instruments and equipment, medical devices and consumables, pharmaceuticals, digital solutions to medical laboratory equipment and consumables.
With a wide range of product lines, the company has a strong global business network. According to the data, Han Ruixiang has subsidiaries in 32 countries and regions around the world, serving more than 1 million dental and medical customers.
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The dental boss's recent revenue fell short of expectations
Since its establishment in 1932, Han Ruixiang has a history of nearly 100 years. What started as a small supplier of medical supplies to dental offices in New York grew over time to become the global provider of medical products and services it is today.
As a Fortune 500 company and a member of the S&P 500 index, the company's sales have grown at a compound annual growth rate of approximately 12.1% since becoming a public company in 1995, reaching $12.6 billion in 2022.
But recently, Han Ruixiang's performance does not seem to be ideal. At the end of February 2024, Han Ruixiang announced its results for the fourth quarter and full year of 2023. In the fourth quarter, Han Ruixiang achieved revenue of 3.017 billion US dollars, a year-on-year decrease of 10.5%, and Han Ruixiang said that the decline in revenue was mainly caused by last year's cybersecurity incident. The gross profit margin was relatively stable, with 30.65% and 31.29% in the fourth quarter and the full year respectively, compared with 29.64% and 30.29% in the same period last year, and the gross profit margin increased by about 1% overall. The net profit attributable to the parent company decreased significantly, with US$18 million in the fourth quarter, a decrease of 61.7%, and US$416 million for the whole year, a decrease of 22.68%. The full-year revenue for 2023 was $12.339 billion, a decrease of 2.43%, indicating that the decline in performance in the fourth quarter was the reason for the weaker-than-expected full-year results.
Last year, GlobalData's forecast showed that as the negative impact of the new crown epidemic gradually subsides, orthopedic surgery will fully recover, and the entire orthopedic equipment market will reach nearly 50 billion US dollars (about 365.8 billion yuan). In the latest annual report of the top 10 orthopedic companies, except for ZimVie, whose performance is declining, the other 9 are all on an upward trend or remain unchanged, which once again confirms GlobalData's optimistic expectations.
Considering the declining performance last year, as the world's largest dental company, the acquisition of Han Ruixiang and its entry into the orthopedic market can help it turn the tide and continue to maintain rapid growth?