Private equity giant KKR has taken a 12% stake in Henry Schein and reached an agreement to add independent directors to the company’s board, the medical and dental supplies distributor announced Wednesday, according to a report by the Wall Street Journal.
Shares of Henry Schein rose more than 3% to $78.54 in premarket trading following the news.
The $9.5bn company has faced mounting pressure from investors to improve its competitive position against larger distributors like Cardinal Health, with activist hedge fund Ananym Capital Management having previously pushed for board changes, including a CEO search, cost-cutting measures, and capital optimisation. Earlier this month, Reuters reported that Ananym was considering nominating up to six directors.
As part of the agreement, Max Lin and William Daniel will join Henry Schein’s board as independent directors.
Lin is a partner at KKR leading its healthcare industry team. He will also serve as vice chair of the nominating and governance committees, playing a key role in Henry Schein’s board composition and CEO succession planning.
Daniel, a former executive at Danaher and executive advisor to KKR, will bring additional industry expertise to the board.
Hombach, an independent director, has also been appointed and will serve on the board’s Strategic Advisory Committee.
KKR has significant experience in the dental sector, with investments in Heartland Dental and 123Dentist. The firm’s new stake in Henry Schein signals a deeper commitment to the dental and medical distribution markets.
