Henry Schein, Inc. (NASDAQ: HSIC), the world’s largest provider of health care solutions to office-based dental and medical practitioners, announced plans to enter the upper- and lower-extremities specialty segment of the orthopedic market in line with our long-standing strategy.
The Company today announced that it has signed an agreement to acquire a majority interest in TriMed, Inc., a global developer of solutions for the orthopedic treatment of lower extremities (foot and ankle) and upper extremities (primarily hand and wrist).
Headquartered in Santa Clarita, CA, TriMed had 2022 net sales of approximately $48 million. The transaction is subject to certain regulatory approvals and closing conditions, and is expected to be completed in the first quarter of 2024. Henry Schein expects the transaction to be neutral to 2024 non-GAAP earnings per share and accretive thereafter. Financial terms were not disclosed.
In addition, Henry Schein has entered into a strategic relationship with Extremity Medical LLC, an innovative medical device company focused on developing new products for fusion, fixation, and motion preservation in the orthopedic treatment of the lower extremities and wrist. Headquartered in Parsippany, NJ, Extremity Medical will operate as a separate, stand-alone company.
“Partnering with the TriMed and Extremity teams will provide Henry Schein with a platform to establish ourselves as a leading manufacturer and supplier in the Foot and Ankle as well as Hand and Wrist extremity segments of the orthopedic market,” said Stanley M. Bergman, Chairman and Chief Executive Officer, Henry Schein, Inc. “We believe the experienced leadership team that we have assembled is well-positioned to leverage our deep and longstanding relationships with existing integrated delivery network and ambulatory surgery center customers.”
TriMed founders David Medoff, Chief Commercial Officer, and Robert Medoff, MD, Medical Advisor, will continue to be a part of the management team of TriMed and bring to Henry Schein extensive experience, primarily in product development and commercial relationships.
“Through our new partnership with Henry Schein, we look forward to working together to identify new opportunities to provide quality care to patients,” said David Medoff. “TriMed provides unique treatment options for challenging indications and injuries. Henry Schein will help to accelerate our growth and increase our reach within the medical community.”
Matthew Lyons, CEO of Extremity Medical, added: “Our strategic relationship with Henry Schein will enable us to expand our reach, ultimately improving patient care and outcomes.”
“We are looking forward to entering the extremity segment with the complementary portfolios of TriMed and Extremity Medical, which extend our Brasseler Medical orthopedic cutting accessories and revision instrument solutions,” said Tom Popeck, President of Henry Schein’s Healthcare Specialties Group. “Upper and lower extremities are among the fastest-growing segments of orthopedics, representing a total addressable market of more than $5.5 billion. We are confident that we will accelerate the reach of TriMed and Extremity on a global basis.
