Structure Streamlines Dental and Medical
Distribution Businesses with Continued Focus on Software, Specialty
Products, and Services
Henry Schein, Inc. (Nasdaq: HSIC), the world’s largest provider
of health care solutions to office-based dental and medical
practitioners, announced today a new organizational structure to
accelerate the Company’s strategic goals of enhancing customer
experience and operational performance.
The new structure seeks to harness the benefits of consolidating
the management of Henry Schein’s Dental and Medical distribution
businesses while continuing to increase the Company’s exposure to
faster-growing and higher-margin markets through organic growth and
acquisitions.
Henry Schein will create two groups to lead the management
globally of its Dental and Medical distribution businesses, as
follows:
- The North America Distribution Group, led by Brad Connett, CEO.
Mr. Connett, who joined the Company in 1997, previously served as
President of Henry Schein’s U.S. Medical Group and is recognized as
a long-standing leader in health care distribution.
- The International Distribution Group, led by Andrea Albertini,
President. Mr. Albertini, who joined the Company in 2013,
previously served as President of Henry Schein’s EMEA Dental
Distribution Group and has nearly 20 years of experience in
successfully managing global dental businesses. Mr. Albertini will
also join the Company’s Executive Management Committee.
“As part of the continuous operational improvement of Henry
Schein, we have been pursuing a strategy called ‘One Distribution’
to more tightly integrate the management of our distribution
businesses globally,” said Mr. Stanley M. Bergman, Chairman of the
Board and Chief Executive Officer, Henry Schein, Inc. “One
Distribution is designed to more fully leverage functions, talent,
processes, and systems across Henry Schein’s distribution
businesses to enhance our customer experience and maximize
efficiency and performance.”
The Company intends to continue to focus on addressing customer
needs by expanding its three specialty products and services
businesses that participate in higher-growth, higher-margin
markets, as follows:
- Henry Schein One, led by Mike Baird, CEO, which provides
integrated software and services to the dental profession. Mr.
Baird joined Henry Schein One in 2020 and has extensive experience
and leadership in the health care information technology
field.
- The Global Oral Reconstruction Group, led by Rene Willi, CEO,
and Steve Boggan, Chief Commercial Officer, which includes the
Camlog and BioHorizons Group as well as medentis medical,
collectively a leading dental implant and bone regeneration
products business. The Global Oral Reconstruction Group will
include Zahn Dental, a leading dental laboratory products and
services business, led by Rita Acquafredda. Mr. Willi, Mr. Boggan,
and Ms. Acquafredda, each of whom are long-standing Henry Schein
executives, have decades of deep involvement in the oral surgery
and prosthetics field.
- The Strategic Business Units Group, led by David Brous, CEO,
Strategic Business Group, which spans manufacturing and
service-based endodontic, orthodontic, and other health care
businesses. Mr. Brous joined the Company in 2002, leading
businesses across multiple markets and geographies. Given his deep
international experience, Mr. Brous will also have executive
responsibility for the International Distribution Group.
“These three business groups reflect the Company’s long-standing
commitment to provide software, specialty products, and services
designed to help customers operate more efficient practices and
support clinical care, while contributing to the Company’s
financial performance,” Mr. Bergman said. “Our customers
increasingly rely upon Henry Schein’s comprehensive offering of
innovative solutions and services, along with our distribution
network, for their success in a digital world. We look forward to
continuing to advance the seamless, unified integration of our
suite of products and service solutions.”
Jonathan Koch, currently the CEO of Henry Schein’s Global Dental
Group, has decided to leave Henry Schein to return to the drug
development and commercialization industry from which he joined the
Company in 2018.
“We are pleased that Jon will remain on the board of Henry
Schein One, the Company’s practice management software and services
joint venture with Internet Brands,” Mr. Bergman said. “Under Jon’s
leadership, the Global Dental Group and Henry Schein One made
significant strides transforming the business in accordance with
our strategic plan while adjusting to the challenges resulting from
shifting industry dynamics and the pandemic. We wish Jon and his
family the very best.
“The organizational changes we announced today reflect the
continued development of Henry Schein’s strategy to capitalize on
the major trends in health care,” Mr. Bergman said. “These changes
are designed to heighten the customer experience and increase
efficiency with an integrated offering of products, solutions, and
services.”
The Company will continue to report quarterly sales in the
categories of Dental, Medical, and Technology and Value-Added
Services. The changes announced today will not result in any
associated restructuring charges.
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 approximately 21,000 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 120,000 branded
products and Henry Schein private-brand products in stock, as well
as more than 180,000 additional products available as special-order
items.
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 $10.1 billion in 2020, and have grown at a compound annual
rate of approximately 12 percent since Henry Schein became a public
company in 1995.
For more information, visit Henry Schein at www.henryschein.com,
Facebook.com/HenrySchein, and @HenrySchein on Twitter.
Cautionary Note Regarding Forward-Looking Statements
In accordance with the “Safe Harbor” provisions of the Private
Securities Litigation Reform Act of 1995, we provide the following
cautionary remarks regarding important factors that, among others,
could cause future results to differ materially from the
forward-looking statements, expectations and assumptions expressed
or implied herein. All forward-looking statements made by us are
subject to risks and uncertainties and are not guarantees of future
performance. These forward-looking statements involve known and
unknown risks, uncertainties and other factors that may cause our
actual results, performance and achievements or industry results to
be materially different from any future results, performance or
achievements expressed or implied by such forward-looking
statements. These statements are generally identified by the use of
such terms as “may,” “could,” “expect,” “intend,” “believe,”
“plan,” “estimate,” “forecast,” “project,” “anticipate,” “to be,”
“to make” or other comparable terms. Factors that could cause or
contribute to such differences include, but are not limited to,
those discussed in the documents we file with the Securities and
Exchange Commission (SEC), including our Annual Report on Form
10-K. Forward looking statements include the overall impact of the
Novel Coronavirus Disease 2019 (COVID-19) on the Company, its
results of operations, liquidity, and financial condition
(including any estimates of the impact on these items), the rate
and consistency with which dental and other practices resume or
maintain normal operations in the United States and
internationally, expectations regarding personal protective
equipment (“PPE”) and COVID-19 related product sales and inventory
levels and whether additional resurgences or variants of the virus
will adversely impact the resumption of normal operations, the
impact of restructuring programs as well as of any announced and
future acquisitions, and more generally current expectations
regarding performance in current and future periods. Forward
looking statements also include the (i) ability of the Company to
make additional testing available, the nature of those tests and
the number of tests intended to be made available and the timing
for availability, the nature of the target market, as well as the
efficacy or relative efficacy of the test results given that the
test efficacy has not been, or will not have been, independently
verified under normal FDA procedures and (ii) potential for the
Company to distribute the COVID-19 vaccines and ancillary
supplies.
Risk factors and uncertainties that could cause actual results
to differ materially from current and historical results include,
but are not limited to: risks associated with COVID-19 and any
variants thereof, as well as other disease outbreaks, epidemics,
pandemics, or similar wide spread public health concerns and other
natural disasters or acts of terrorism; our dependence on third
parties for the manufacture and supply of our products; our ability
to develop or acquire and maintain and protect new products
(particularly technology products) and technologies that achieve
market acceptance with acceptable margins; transitional challenges
associated with acquisitions, dispositions and joint ventures,
including the failure to achieve anticipated synergies/benefits;
financial and tax risks associated with acquisitions, dispositions
and joint ventures; certain provisions in our governing documents
that may discourage third-party acquisitions of us; effects of a
highly competitive (including, without limitation, competition from
third-party online commerce sites) and consolidating market; the
potential repeal or judicial prohibition on implementation of the
Affordable Care Act; changes in the health care industry; risks
from expansion of customer purchasing power and multi-tiered
costing structures; increases in shipping costs for our products or
other service issues with our third-party shippers; general global
macro-economic and political conditions, including international
trade agreements and potential trade barriers; failure to comply
with existing and future regulatory requirements; risks associated
with the EU Medical Device Regulation; failure to comply with laws
and regulations relating to health care fraud or other laws and
regulations; failure to comply with laws and regulations relating
to the confidentiality of sensitive personal information or
standards in electronic health records or transmissions; changes in
tax legislation; litigation risks; new or unanticipated litigation
developments and the status of litigation matters; cyberattacks or
other privacy or data security breaches; risks associated with our
global operations; our dependence on our senior management, as well
as employee hiring and retention; and disruptions in financial
markets. The order in which these factors appear should not be
construed to indicate their relative importance or priority.
We caution that these factors may not be exhaustive and that
many of these factors are beyond our ability to control or predict.
Accordingly, any forward-looking statements contained herein should
not be relied upon as a prediction of actual results. We undertake
no duty and have no obligation to update forward-looking
statements.
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version on businesswire.com: https://www.businesswire.com/news/home/20210915005524/en/
Investors:
Steven Paladino Executive Vice President and CFO
steven.paladino@henryschein.com (631) 843-5500
Investor Relations 631-390-8105 investor@henryschein.com
Media:
Ann Marie Gothard Vice President, Corporate Media Relations
annmarie.gothard@henryschein.com (631) 390-8169
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