Henry Schein Takes Dental Biz to Brazil - Analyst Blog

Henry Schein, Inc. HSIC has forayed into the Brazilian dental market with a 50% ownership investment in Dental Speed Graph – the largest direct online marketing provider of dental consumable merchandise in Brazil.

This investment not only marks Henry Schein's entry into Brazil, but also represents the company's first operation in South America. Financial terms of the transaction have not been disclosed yet.

While NY-based Henry Schein is a global distributor of healthcare products and services with sales of approximately $5 billion in 2013, Dental Speed Graph is a fast growing, privately held company in Brazil with revenues of approximately $28 million in 2013.

Brazil has approximately 150,000 practicing dentists who serve the healthcare market, the scope of which is being increasingly boosted by an aging population and an expanding middle class. It is evident from such market dynamics that annual expenditure for health care services is expected to rise in emerging countries like Brazil. This in turn provides a lucrative opportunity for healthcare providers like Henry Schein to successfully expand its business in the country.

With this recent ownership stake, Henry Schein now has operations across 27 countries.

Management at Henry Schein is banking on the prospects of this partnership and views favorably the opportunities galore in Brazil – Latin America's largest and the world's seventh largest economy.

Dental Speed Graph is also optimistic about the affiliation as it believes that combined resources from the two companies will enable it to serve its customers better with a broader array of healthcare products, services and integrated solutions.

At present, Henry Schein caters to its customers through a multifaceted sales and marketing approach that includes more than 2,600 dedicated field sales consultants, product specialists, telesales representatives and direct marketing programs.

Henry Schein currently carries a Zacks Rank #3 (Hold). Some better-ranked stocks worth considering in the medical/dental supply industry include The Cooper Companies Inc. COO, Steris Corp. STE and Milestone Scientific Inc. (MLSS). All the three stocks carry a Zacks Rank #2 (Buy).
 

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