Henry Schein Announces Strategic Partnership Agreement with KKR: Board Changes and Financial Results

Henry Schein Inc. (NASDAQ:HSIC) disclosed today a Strategic Partnership Agreement with KKR Hawaii Aggregator L.P., marking a significant development for the company. The agreement entails the appointment of Max Lin and William K. “Dan” Daniel as independent directors to Henry Schein’s board, subject to certain conditions. The partnership also includes a private placement investment of 3,285,152 shares of common stock to KKR, totaling $250 million.

Max Lin, a KKR partner leading the Health Care industry team, along with William K. “Dan” Daniel will join various committees of the Board. Additionally, Robert J. Hombach has been appointed as an independent director. He brings with him substantial financial and strategic experience in the health care sector, having served key roles in prominent companies.

In tandem with this announcement, Henry Schein shared preliminary unaudited financial results for the fourth quarter and full year ending December 28, 2024. Revenue for the fourth quarter stood at $3.2 billion, contributing to a full-year revenue of $12.7 billion. Preliminary non-GAAP net income for the fourth quarter was reported at $149 million, translating to $1.19 per diluted share. The Company also provided a preliminary outlook for 2025, anticipating low to mid-single-digit growth in revenues and non-GAAP EPS.

Furthermore, Henry Schein has expanded its share repurchase program by $500 million, indicating a commitment to enhancing shareholder value. The Company aims to further reduce the size of its Board over time after the 2025 Annual Meeting, aligning with its ongoing strategic initiatives.

The Company will release its detailed financial results for the fourth quarter and full year on February 25, 2025, accompanied by a live webcast of the earnings conference call. Centerview Partners LLC and Evercore Inc. are acting as financial advisors, while Cleary Gottlieb Steen & Hamilton LLP is serving as legal advisor to Henry Schein.

The transactions highlighted in the Strategic Partnership Agreement are expected to propel Henry Schein’s growth trajectory, emphasizing collaborative efforts with KKR to foster operational excellence, capital allocation strategies, and employee engagement. The Company’s reinforcement of its core business and strategic initiatives aligns with its commitment to delivering quality care and value to practitioners and stakeholders within the health care industry.

This article was generated by an automated content engine and was reviewed by a human editor prior to publication. For additional information, read Henry Schein’s 8K filing here.

About Henry Schein

Henry Schein, Inc provides health care products and services to dental practitioners, laboratories, physician practices, and ambulatory surgery centers, government, institutional health care clinics, and other alternate care clinics worldwide. It operates through two segments, Health Care Distribution, and Technology and Value-Added Services.