KKR's Strategic Stake in Henry Schein: A Win-Win for Growth and Value

In a strategic move that signals confidence in the healthcare sector and a commitment to long-term growth, global investment firm KKR has taken a significant stake in Henry Schein, the world's largest provider of health care solutions to office-based dental and medical practitioners. This strategic investment, valued at $250 million, will see KKR become the largest non-index fund shareholder in Henry Schein, with a 12% position, and the ability to increase its stake up to 14.9% through open market purchases.

The investment comes as Henry Schein reported preliminary Q4 2024 results, with revenue of $3.2 billion and full-year 2024 revenue of $12.7 billion. The company's Q4 GAAP EPS was $0.74, while non-GAAP EPS reached $1.19. For 2025, Henry Schein projects low to mid-single-digit growth in both revenues and non-GAAP EPS. The company also announced a $500 million increase to its share repurchase program, with $250 million to be executed through accelerated share repurchases.

KKR's investment in Henry Schein is a testament to the company's strong fundamentals, growth prospects, and the attractiveness of the healthcare sector. KKR's confidence in Henry Schein's BOLD+1 strategy, which focuses on strategic growth, operational excellence, capital allocation, and employee engagement, is evident in its decision to become a significant shareholder. This strategic partnership will enable Henry Schein to explore additional opportunities to create shareholder value and drive business growth.

As part of the agreement, KKR representatives Max Lin and William K. "Dan" Daniel will join Henry Schein's Board of Directors, bringing valuable healthcare and operational expertise to the company. Max Lin, a partner at KKR leading the Health Care industry team, will join the Board's Nominating and Governance Committee as Vice Chair, participating in governance matters and CEO succession planning. Both Max Lin and William K. "Dan" Daniel will join the Strategic Advisory Committee, which oversees the Company's strategic planning activities. Separately, the Board has appointed Robert J. "Bob" Hombach as an independent director, further enhancing the Board's expertise in finance, operations, and dental and other areas of health care.

The addition of these highly experienced executives to the Henry Schein Board will temporarily increase its size to 16 directors before reducing to 14 directors effective immediately following the Company's 2025 Annual Meeting. This strategic move will enable Henry Schein to leverage KKR's expertise in healthcare and operational excellence to drive shareholder value and growth.

In conclusion, KKR's strategic investment in Henry Schein is a win-win for both parties, as it aligns with KKR's broader investment philosophy and demonstrates confidence in Henry Schein's growth prospects. The addition of KKR representatives to the Henry Schein Board will bring valuable expertise and insights, enabling the company to explore new opportunities and drive shareholder value. As Henry Schein continues to expand its national homecare solutions platform and pursue strategic growth initiatives, this partnership will be instrumental in supporting the company's mission to enable dental and medical practitioners and drive growth in the healthcare industry.