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Henry Schein (HSIC) Inks New Deal to Acquire Condor Dental

Henry Schein, Inc. HSIC recently entered into a definitive agreement to acquire Condor Dental Research Company SA (Condor Dental). Upon closing the transaction, Condor Dental will join Henry Schein’s International Distribution Group.

This acquisition underscores Henry Schein’s long-standing commitment to strategic acquisitions that allows it to serve customers better while expanding its vast range of products and services that support high-quality dental care delivery.

Henry Schein has served the Swiss dental implant market through its Basel-based division, Camlog Biotechnologies GmbH, since 2004. The latest acquisition of Condor Dental will further extend the company’s foray into the Swiss market for its dental distribution business.

Few Words on Condor Dental

Founded in 1978 and based in Vouvry, Switzerland, Condor Dental is a privately-held dental distribution company that serves general dental practitioners, specialists and laboratories. The company reported around $18 million in sales for 2021. The majority of the sales were derived from dental consumable merchandise, with additional revenues from the customization of dental practices and dental laboratory installations.

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More on the News

Condor Dental will be acquired by Henry Schein from MCCB Holding Sarl, a health care holding company, wholly owned by the Libon family. This buyout deal is estimated to be neutral to Henry Schein’s diluted earnings per share in 2022 and accretive thereafter. However, the financial terms of the transaction have been kept under wraps. Per management, Henry Schein’s operational expertise will strengthen Condor Dental’s market position and enhance the level of services and solutions delivered to dental practitioners.

Condor Dental offers considerable growth opportunities within one of Europe’s most promising dental markets. The latest acquisition translates into a significant opportunity for Henry Schein to grow its footprint in Switzerland and to provide the Swiss dental community with its comprehensive portfolio of technology and value-added solutions.

Industry Prospects

Per a report by Fortune Business Insights, the global dental market is expected to see a CAGR of 7.4% during 2022-2029. Factors such as the growing prevalence of dental ailments and increasing technological advancements can be attributable to market growth.

Given the substantial market prospects, Henry Schein’s latest buyout to expand its presence in the Swiss market seems well-timed.

Other Notable Developments

In the first quarter of 2022, Henry Schein registered robust performance within its dental business attributable to strong global equipment and consumable merchandise sales. Global dental sales increased 2.2% compared with the same period last year. The company noted that growth was strong in each dental specialty category, including implants, oral surgery, endodontics and orthodontics.

Apart from this, the Henry Schein One dental software business continued to progress well despite a challenging business environment. Growth within Henry Schein One continues to be driven by a recovery in in-patient traffic to dental offices.

In March 2022, Henry Schein One introduced a version of its dental analytics platform for dental service organization (DSO) — Jarvis Analytics — to help private dental practices accelerate business growth. The latest development will support Henry Schein’s objective to provide the best-quality solutions to dental practices.

Share Price Performance

The stock has outperformed its industry in the past year. The stock has increased 9.9% against the industry's 4.5% decline.

Zacks Rank and Key Picks

Currently, Henry Schein carries a Zacks Rank #3 (Hold).

A few better-ranked stocks in the broader medical space are AMN Healthcare Services, Inc. AMN, Medpace Holdings, Inc. MEDP and UnitedHealth Group Incorporated UNH.

AMN Healthcare has a long-term earnings growth rate of 1.1%. The company surpassed earnings estimates in the trailing four quarters, delivering a surprise of 15.6%, on average. It currently flaunts a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

AMN Healthcare has outperformed its industry in the past year. AMN has gained 7.8% against the industry’s 63.7% fall.

Medpace has a historical growth rate of 27.3%. Medpace’s earnings surpassed estimates in the trailing four quarters, the average surprise being 17.1%. It currently has a Zacks Rank #2 (Buy).

Medpace has outperformed its industry in the past year. MEDP has declined 11.6% compared with the industry’s 63.7% fall.

UnitedHealth has an estimated long-term growth rate of 14.8%. UnitedHealth’s earnings surpassed estimates in the trailing four quarters, the average surprise being 3.7%. It currently carries a Zacks Rank #2.

UnitedHealth has outperformed the industry over the past year. UNH has gained 24% compared with 21.2% industry growth in the said period.

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