Medical products specialist Henry Schein Inc. is drilling into the world’s second-largest dental market.
The Melville-based distributor of products and services to office-based dental, medical and veterinarian providers has announced a “definitive transaction” that expands its presence in Japan, which according to the company boasts 64,000 dental clinics and 90,000 dentists – one-fifth of whom will now be serviced directly by subsidiary Henry Schein Japan.
The new partnership with J. Morita Corp. – a global dental-products supplier that reported $672 million in fiscal 2015 revenues – gives Henry Schein a 50 percent stake in J. Morita subsidiary One Piece Corp., an umbrella of eight dental dealers serving about 6,000 Japanese clinics to the tune of $125 million in 2015 sales, Henry Schein said in a statement. Terms of the deal were not disclosed.
This is not Henry Schein’s first foray there. In October 2014, the U.S. company bought a stake in Iwase Dental Supply, a full-service provider of dental consumables, implants and other equipment. With the new transaction, Henry Schein is continuing to pursue the “exciting strategic opportunity” Japan represents, according to CEO Stanley Bergman.
“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,” Bergman said in a statement. “We look forward to other Japanese dealers joining our partnership in the near future.”
Henry Schein also announced that Kenichiro Iwase, managing director of Iwase Dental Supply, is expanding his role to become managing director of Henry Schein Japan.
“Morita and One Piece share with Henry Schein a heritage of service to dental practitioners,” Iwase noted. “We look forward to working together to bring the best products and services to the Japanese dental community.”
The half-ownership of One Piece Corp. continues Henry Schein’s global-expansion momentum. After a 2015 marked by high-level acquisitions and distribution deals in Italy, Germany, Romania and elsewhere, the company in January announced the acquisition of RxWorks, a leading supplier of veterinary practice management software in Australia, New Zealand, the UK and the Netherlands.
While the company is embroiled in a series of antitrust lawsuits alleging it colluded with competitors in Pennsylvania and Minnesota to squeeze out discount distributors, the wheeling-dealing has helped Henry Schein consistently reach new fiscal heights. The Fortune 500 company – which is Long Island’s largest public company by revenue, and in 2015 was named to the S&P 500, the prestigious index ranking the 500 largest companies traded on NASDAQ and the New York Stock Exchange – reported a record $10.6 billion in global sales in 2015.