Dive Brief:
- Henry Schein said Wednesday it had agreed to acquire Acentus, a medical supplier specializing in delivering products to patients’ homes.
- Henry Schein, a medical and dental supplies distributor, said the acquisition brings its homecare medical products platform’s annual revenue base to approximately $350 million. Financial terms of the deal were not disclosed.
- Acentus specializes in delivering continuous glucose monitors (CGMs), a product Henry Schein highlighted several times in the announcement. The deal is expected to close in the first quarter of 2025.
Dive Insight:
Acentus adds to a handful of other deals Henry Schein has pulled off over the past few years. The company acquired Prism Medical Products in 2021 and Shield Healthcare and Mini Pharmacy in 2023. Henry Schein said in the Acentus announcement that its recent M&A activity has reinforced its commitment to the homecare medical supplies market.
Tampa, Florida-based Acentus has annual revenue of about $35 million, according to Henry Schein. It supplies urological catheters, wound care and medical nutrition to patients at home, in addition to CGMs.
Henry Schein CEO Stanley Bergman called out Acentus’ ability to deliver CGMs to patients’ homes. The deal comes as diabetes technology continues to grow in popularity and as top players such as Abbott and Dexcom have moved into the wellness space with over-the-counter versions of their glucose sensors.
Bergman said that Henry Schein is focusing on healthcare delivery in the home as the industry shifts further toward that direction.
When the deal closes, Acentus founders Brett Carroll, Todd Cianfrocca, Greg Duvall and Julio Valdivia will join Henry Schein.
In early November, Henry Schein reported third-quarter sales of $3.2 billion, representing year-over-year growth of about 0.4%. The company is still challenged by a cybersecurity incident that occurred last year, forcing it to take systems offline and causing an estimated $350 million to $400 million hit to sales in the fourth quarter of 2023.
A little more than one year after the cyber incident, Bergam told investors that Henry Schein is still working its way back.
“From our point of view, we are gaining back market share that we lost during the cyber incident — albeit at a slow-ish rate — but the rate continues in a positive direction, really since the beginning of [2024],” the CEO said on a November earnings call.
Henry Schein expects the Acentus purchase to be neutral to 2024 non-GAAP earnings per share and accretive after.
