Henry Schein, Inc., the world's largest provider of healthcare products and services to office-based dental, animal health and medical
practitioners, will make “a strategic investment” in Birmingham, Alabama
-based dental implant manufacturer BioHorizons, Inc., advancing the Company's goal of expanding its position in the dental specialty market.
Henry Schein said it reached an agreement to acquire a 60 percent interest in BioHorizons, a U.S.-based manufacturer of advanced dental implants sold internationally. Under the agreement, BioHorizons will continue to operate as an independent company.
“Henry Schein's strategy includes advancing our position in dental specialty markets, an integral part of which is to support those practitioners who perform oral surgery involving implants," said Stanley M. Bergman, Chairman of the Board and Chief Executive Officer of Henry Schein. "Implant dentistry is a critical element of the profession's transition to digital dentistry. More and more abutments for implants are being digitally designed and fabricated, which increase patient comfort and esthetics and reduce patient visits. Customer demand for implants and the associated materials are expected to increase as digital processes are adopted and the dental experience for the patient is enhanced."
Based in Birmingham, Alabama, BioHorizons employs approximately 325 people and markets its products in 85 markets. Its revenue has been growing on average by more than 10 percent annually, and more than half of that revenue is derived in the U.S.
"On behalf of the shareholders and management of BioHorizons, we are delighted with this partnership, which combines BioHorizons' record of global growth and clinical excellence in the implant dentistry field with Henry Schein's strengths worldwide," said Mortimer Berkowitz III, Chairman of BioHorizons. "Having known the Henry Schein management team for some years, we look forward to working closely with them to build the business into a global leadership position by delivering outstanding patient results through differentiated products."
"We believe our partnership with Henry Schein will further enhance our growth prospects in the implant and biologics market," said BioHorizons President and CEO, Steve Boggan. "The strength of Henry Schein and its deep relationships in the marketplace create an ideal combination. We are looking forward to advancing the goals of both organizations, and are very pleased to be part of Team Schein."
While financial terms of the proposed transaction were not disclosed, Schein officials said the transaction with BioHorizons involves a two-step process: A recapitalization through which Henry Schein will lend approximately $145 million to BioHorizons to fund, among other uses, a distribution to shareholders, which will occur prior to closing, followed by the equity investment. Pending regulatory approval, Henry Schein expects to complete the transaction by the end of the year.
Schein said its agreement with BioHorizons strengthens its position “in a critical and growing market that also includes the company's investment in CAMLOG Biotechnologies AG, a leading manufacturer of implants in Europe. With these two investments, Henry Schein will have important positions in two of the largest implant markets – the U.S. and Germany – as well as a growing presence in the rest of the world."
“BioHorizons and CAMLOG, which will each operate independently, are strong brands with unique features and benefits that offer customers a broad range of treatment options,” the company said.