Henry Schein announced that it acquired a majority ownership position in home medical supply maker Prism Medical Products.
Elkin, N.C.-based Prism provides specialty home medical supplies with a core competency in advanced wound care products, according to a news release. The transaction leads Henry Schein Medical to enter an established and growing market for such products. Prism will operate as a subsidiary of Henry Schein Medical and will be managed separately as an individual division by founder & president Chris Cartwright. The company has more than 200 team members and collected net revenue for the 12 months ended Sept. 30, 2020, of about $52 million.
“I am very proud of all that the team at Prism has accomplished, including our track record of organic revenue growth along with consistent increases in unique referral sources and new patients,” Cartwright said in the release. “We look to the future with excitement and optimism as part of Henry Schein Medical. Melville, N.Y.-based Henry Schein expects Prism to be neutral to its 2021 earnings per diluted share and accretive thereafter, with further financial terms remaining undisclosed.
“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, and with Prism we have the ideal partner with a strong brand and a complementary business model,” Henry Schein chairman & CEO Stanley M. Bergman said. “This partnership expands Henry Schein Medical’s continuum-of-care delivery model and allows us to move closer and to interact directly with patients. It also strengthens our relationships with the physicians who prescribe home medical supplies.
“Importantly, Prism and its management team is tightly aligned with Henry Schein’s strategy and culture, and we look forward to a smooth integration of this business. We welcome our new colleagues to Team Schein and look forward to continued success together.”
The M&A market for healthcare companies continues to strengthen as we enter 2021. There is unprecedented capital in market, the lowest interest rates in US history and strong acquirer motivations for high quality healthcare companies. Across the continuum of care, buyers and investors are looking for well established, profitable businesses and offering strong valuations and options for management.
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