As a result of the transaction, Henry Schein will own a 50% interest in One Piece Corp., a subsidiary of J. Morita, one of the world's largest manufacturers and distributors of dental equipment and supplies. One Piece is composed of eight dental dealers throughout Japan, which serve approximately 6,000 dental clinics and had aggregate sales in fiscal 2015 of approximately $125 million. Henry Schein expects the transaction to be neutral to financial results. Financial terms of the transaction were not disclosed.
This transaction builds on Henry Schein's presence in Japan, which commenced in October 2014 with an investment in Iwase Dental Supply, Inc., a leading full-service provider of dental consumables, implants and equipment. Kenichiro (Ken) Iwase, the Managing Director of Iwase Dental Supply, will assume the leadership of Henry Schein's expanded presence in Japan.
"Japan represents an exciting strategic opportunity for Henry Schein," said Stanley M. Bergman, Chairman of the Board and Chief Executive Officer of Henry Schein, Inc. "While Iwase Dental serves customers in the greater Tokyo area, the One Piece dealers are located throughout the country, giving Henry Schein Japan a wide presence in the marketplace. We look forward to other Japanese dealers joining our partnership in the near future, as well as representing the products of all our dental suppliers, with the goal of providing the highest quality in service to all Japanese dentists.
"We are especially excited to partner with J. Morita, a company we have known for many years and whom we hold in the highest regard," Mr. Bergman said. "We look forward to working together to bring new services and solutions to the Japanese dental community, and we welcome our new colleagues at One Piece to Team Schein."
Japan has approximately 90,000 dentists and about 64,000 dental clinics. With the addition of One Piece, Henry Schein Japan will serve approximately 20% of Japan's dentists.
"We are very pleased to be working with Henry Schein, a global leader in oral health and a company whose values and business approach we share," said Haruo Morita, President and CEO of J. Morita. "Morita is dedicated to offering the best possible experience to patients and dental practitioners. This new partnership with Henry Schein will expand our mutual efforts to advance the dental profession in Japan for the benefit of the patient."
Morita, with 2015 fiscal year revenue of $672 million, develops innovative equipment that meets the needs of dental clinics and helps provide better clinical care. The company distributes and retails dental products globally and provides after-sale service.
The eight dealers that comprise Morita's One Piece subsidiary are Asuka Dental Supply, based in Nara; Dentall Corp., based in Nagoya; DUS Co. Ltd., based in Kushiro; IDental Supply Co. Ltd., based in Gifu; Kuwabara Dental, based in Nigata; Oriental Dental Equipment, based in Oita; Sapporo Dental Corp., based in Sapporo; and Uchiyama Corp., based in Sendai.
"We are pleased to be joining with such highly respected partners as Morita and One Piece," said Henry Schein Japan Managing Director Ken Iwase. "Morita and One Piece share with Henry Schein a heritage of service to dental practitioners, and we look forward to working together to bring the best products and services to the Japanese dental community."
About Henry Schein, Inc.
Henry Schein, Inc. (NASDAQ: HSIC) is the world's largest provider of health care products and services to office-based dental, animal health and medical practitioners. The Company also serves dental laboratories, government and institutional health care clinics, and other alternate care sites. A Fortune 500® Company and a member of the S&P 500® and the NASDAQ 100® indexes, Henry Schein employs nearly 19,000 Team Schein Members and serves more than one million customers.
The Company offers a comprehensive selection of products and services, including value-added solutions for operating efficient practices and delivering high-quality care. Henry Schein operates through a centralized and automated distribution network, with a selection of more than 110,000 branded products and Henry Schein private-brand products in stock, as well as more than 150,000 additional products available as special-order items. The Company also offers its customers exclusive, innovative technology solutions, including practice management software and e-commerce solutions, as well as a broad range of financial services.
Headquartered in Melville, N.Y., Henry Schein has operations or affiliates in 33 countries. The Company's sales reached a record $10.6 billion in 2015, and have grown at a compound annual rate of approximately 15% since Henry Schein became a public company in 1995. For more information, visit Henry Schein at www.henryschein.com, Facebook.com/HenrySchein and @HenrySchein on Twitter.
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SOURCE Henry Schein, Inc.