Henry Schein acquires Prism Medical Products in move toward home market
Melville-based Henry Schein has acquired a majority stake in Prism Medical Products LLC, a direct-to-consumer provider of medical products. Credit: Barry Sloan
Henry Schein Inc., in a move to expand its distribution model beyond the office practices of dentists and physicians, has acquired a direct-to-consumer provider of medical products.
Melville-based Henry Schein, Long Island's largest public company based on revenue, announced after the stock market close on Tuesday that it had acquired a majority stake in Prism Medical Products LLC. Financial terms of the deal were not disclosed.
"Expanding beyond our core base of office-based physicians and entering the home health market has been a long-standing strategic goal of Henry Schein’s medical business," Henry Schein chairman and chief executive Stanley M. Bergman said in a statement.
Bergman said the acquisition allows Henry Schein "to interact directly with patients."
Henry Schein's acquisition comes as e-commerce giant Amazon.com moves deeper into health care, including offering supplies to dentists, a core market of the Long Island company.
Shares of Henry Schein rose 2.6% to close Wednesday at $69.56.
Jeff D. Johnson, an analyst at Robert W. Baird & Co. Inc., said Prism, with annual revenue of about $50 million, could be easily integrated into Henry Schein, with sales of about $10 billion.
Henry Schein "has been looking for additional growth opportunities in adjacent, (but not too dissimilar) markets," Johnson said in a statement.
Prism, a privately held company based in Elkin, North Carolina, distributes about 4,000 products including wound dressings, breast pumps and urology supplies.
The company, with more than 200 employees, will operate as a division of Henry Schein Medical and will be overseen by Chris Cartwright, founder and president of Prism Medical.
Cartwright said Prism is distinguished by its ability to help patients deal with insurance coverage and the many products available.
The acquisition is not expected to affect Henry Schein's 2021 earnings per diluted share, but add to them in future years.
Henry Schein has operations or affiliates in 31 countries and more than 19,000 employees.
Ken Schachter covers corporate news, including technology and aerospace, and other business topics for Newsday. He has also worked at The Miami Herald and The Jerusalem Post.
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