Schein Sinks Teeth Into Dental Supplier Deal

Henry Schein has gobbled up another company. The Melville, NY-based medical, dental, and veterinary supplies merchant on June 4 announced an agreement to buy the full-service and special markets businesses of New York-based Becker-Parkin Dental Supply Co. Officials for the $5.15 billion Henry Schein said the deal would be completed in July. Terms were not disclosed, but Schein estimates the two businesses will bring $40 million-$45 million in revenue in the first full year.

The privately held Becker-Parkin Dental Supply Co. dates back more than 70 years. Its full-service business sells consumable dental products and equipment through field sales representatives, while its special markets business serves corporate dental customers with multiple offices and centralized purchasing. Approximately 25 full-service and special markets sales representatives from Becker-Parkin will be added to Henry Schein.

“This is an exciting development in the continued growth of our U.S. dental business,” Henry Schein chairman/CEO Stanley M. Bergman said in a statement. “This acquisition will expand and increase penetration for Sullivan-Schein Dental in key markets, including New York, Florida, and Arizona, as well as continued leveraging of our existing infrastructure.”

Last year Craig Battle, managing director of Princeton, NJ-based investment bank Tucker Alexander, referred to Henry Schein as an “acquisition machine” after it acquired NLS Animal Health, a privately held, full-service veterinary distribution business based in Owings Mills, MD in March 2006. In June 2006 Schein bought three divisions of Jericho, NY-based rival Darby Group Cos. for $51.5 million in cash.

As for Henry Schein’s latest acquisition, Battle says that Becker-Parkin is “a nice little company. I don’t know if [Henry Schein] competes with anyone in this segment, but this deal improves their position in the market.”