Benzinga | Mar 30, 2021 09:18AM EDT

Henry Schein Announces Majority Ownership Position In Stradis Healthcare

Company's custom kitting capabilities will advance Henry Schein Medical's commitment to provide specialty solutions to customers

Henry Schein, Inc. (NASDAQ:HSIC), the world's largest provider of health care solutions to office-based dental and medical practitioners, today announced a majority ownership position in Stradis Medical, LLC (Stradis Healthcare), a transaction that strengthens Henry Schein's commitment to the growing ambulatory surgery market.

This press release features multimedia. View the full release here: https://www.businesswire.com/news/home/20210330005262/en/

Stradis offers a variety of stock and custom procedure kits and trays. From IV start kits to major surgery back table kits -- cardiac, dental/oral, obstetrics and gynecology, ophthalmic, orthopedic, plastic surgery, and more -- Stradis builds its kits and trays using quality products to enhance any procedure. (Photo: Business Wire)

Based in Atlanta, Stradis Healthcare specializes in medical device packaging and custom procedure kits and trays. The company is a provider of customized procedure packs, minor trays, and kits to surgical centers, private practices, oral surgeons, and a multitude of surgical and clinical specialties nationwide. Privately held Stradis Healthcare was formed through a series of acquisitions beginning in 2000 and is now one of the only independent sterile medical kitting companies in the U.S, with facilities in Atlanta and in Waukegan, Illinois.

The addition of Stradis Healthcare to Henry Schein's Medical group will create a unique kitting, contract packaging, and serialized pharmaceutical organization that will advance the mission of health care delivery, creating efficiencies and savings for providers, and facilitating the delivery of high-quality patient care. While Stradis Healthcare will maintain its own brand, management team, facilities, and market positioning, this investment will accelerate Henry Schein Medical's ability to provide innovative and customized solutions to practitioners, medical device companies, and health care distribution partners while also creating new business opportunities.

Stradis Healthcare had sales for the 12 months ended September 30, 2020, of approximately $39 million. This transaction is expected to be neutral to Henry Schein's 2021 diluted earnings per share and to be accretive thereafter. Financial terms of the transaction were not disclosed.

"With the addition of Stradis Healthcare, we are strengthening our commitment to the ambulatory surgery market and enhancing our offering by combining product portfolios and capabilities," said Stanley M. Bergman, Chairman of the Board and Chief Executive Officer of Henry Schein. "Ambulatory surgery centers play an important role in reducing the cost of health care. As a result of this partnership, Stradis Healthcare will advance Henry Schein Medical's deep commitment to provide specialty solutions to customers along the health care supply chain. We warmly welcome our new Stradis Healthcare colleagues to Team Schein."

Jeff Jacobs, the CEO and Founder of Stradis Healthcare, will help facilitate a smooth transition over the next 18 to 24 months in a non-executive role. Adam Sokol, Vice President and General Manager, and Dave Landry, Vice President, Sales and New Business Development, of Stradis Healthcare will continue to manage the day-to-day operations of the business. Additional information about Stradis Healthcare is available at www.stradishealthcare.com.

"We operate in a large, growing, and highly competitive market," said Mr. Sokol. "In 2018, 5,700 Medicare-certified ASCs operating in the U.S. performed 23 million procedures, the majority of which required a custom procedure tray or kit. As part of Henry Schein Medical, we will be able to expand our geographic reach, better serve current ASC customers of both companies, and grow our business through a customer-centric offering and even stronger relationships with our manufacturing partners."