TDSC.COM, POWERED BY HENRY SCHEIN IS NOW LIVE
MELVILLE, N.Y., October 26, 2020 – Henry Schein, Inc. (Nasdaq: HSIC) and The Dentists Supply Company (TDSC) today announced the completion of the agreement to form a new entity to better serve state dental association members with an online-only option for purchasing dental supplies. TDSC.com, Powered by Henry Schein is now live and will continue to offer everyday low pricing for dental practices that prefer an online ordering experience. The agreement was announced on October 14, 2020.
Henry Schein is now the majority owner of the new entity, with the California Dental Association (CDA) retaining an interest in the newly formed operating company, called TDSC, Inc. With 2019 sales of approximately $20 million, TDSC is expected to be neutral to Henry Schein’s 2020 earnings per diluted share and accretive thereafter. Financial terms were not disclosed.
“TDSC is a highly regarded, fast-growing company that nicely complements our existing dental business, and we are delighted to have completed this partnership," said Stanley M. Bergman, Chairman of the Board and Chief Executive Officer of Henry Schein. “Our new alliance with TDSC expands the options available to dentists to do business with us.
“For customers who prefer an online-only ordering experience, we are now able to accommodate that through TDSC.com, with enhanced product and delivery offerings,” Mr. Bergman said. “Henry Schein remains committed to continue to serve our customers through our high-touch, full-service value proposition—providing world-class supply chain systems and online ordering capabilities, practice management software and digital technology, and an extensive array of equipment and other services.”
Launched in 2017 by CDA, TDSC serves members of all 50 state dental associations with an everyday low-price, online-only option for purchasing dental supplies. Any member of a state dental association is eligible to purchase on TDSC.com, Powered by Henry Schein. Customers of the online-only service will now benefit from an expanded product portfolio, enhanced shipping, improved order fulfillment, and faster delivery backed by Henry Schein. In addition, Henry Schein plans to offer a select set of branded consumable merchandise as well as Henry Schein corporate brand products to TDSC customers.
“With the support of Henry Schein’s operational expertise, TDSC is positioned well to accelerate our growth in the dynamic and highly competitive dental market,” said Burke Spielmann, General Manager of TDSC.com, Powered by Henry Schein. “It is extremely gratifying to build upon the already strong foundation to continue to provide dental association members with consistent, competitive prices through a channel that meets their needs.”
TDSC, Inc. will operate as a subsidiary of Henry Schein and will be managed separately as an individual division. Henry Schein will maintain its full-service distribution model offering customers competitively priced consumable merchandise, equipment and technology products and services, including software, coupled with its highly experienced field and telesales teams. Customers of TDSC.com may also leverage Henry Schein’s field sales network for more comprehensive solutions (equipment, technology, and practice solutions) offered by its full-service model.
To learn more about TDSC.com, Powered by Henry Schein, visit www.tdsc.com.
About TDSC, Inc.
TDSC, Inc., a subsidiary of Henry Schein, Inc. established with the California Dental Association in October 2020, serves members of all 50 state dental associations with an everyday low-price, online-only option for obtaining dental supplies. TDSC, Inc., through TDSC.com, Powered by Henry Schein, will offer members an expanded product portfolio, enhanced shipping, improved order fulfillment, and faster delivery backed by Henry Schein. For more information, visit www.tdsc.com.
Henry Schein, Inc. (Nasdaq: HSIC) is a solutions company for health care professionals powered by a network of people and technology. With approximately 19,000 Team Schein Members worldwide, the Company's network of trusted advisors provides more than 1 million customers globally with more than 300 valued solutions that improve operational success and clinical outcomes. Our Business, Clinical, Technology, and Supply Chain solutions help office-based dental and medical practitioners work more efficiently so they can provide quality care more effectively. These solutions also support dental laboratories, government and institutional health care clinics, as well as other alternate care sites.
Henry Schein operates through a centralized and automated distribution network, with a selection of more than 120,000 branded products and Henry Schein private-brand products in stock, as well as more than 180,000 additional products available as special-order items.
A FORTUNE 500 Company and a member of the S&P 500® index, Henry Schein is headquartered in Melville, N.Y., and has operations or affiliates in 31 countries. The Company's sales from continuing operations reached $10.0 billion in 2019, and have grown at a compound annual rate of approximately 13 percent since Henry Schein became a public company in 1995.
Cautionary Note Regarding Forward-Looking Statements
In accordance with the "Safe Harbor" provisions of the Private Securities Litigation Reform Act of 1995, we provide the following cautionary remarks regarding important factors that, among others, could cause future results to differ materially from the forward-looking statements, expectations and assumptions expressed or implied herein. All forward-looking statements made by us are subject to risks and uncertainties and are not guarantees of future performance. These forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause our actual results, performance and achievements or industry results to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. These statements are identified by the use of such terms as "may," "could," "expect," "intend," "believe," "plan," "estimate," "forecast," "project," "anticipate" or other comparable terms. A full discussion of our operations and financial condition, including factors that may affect our business and future prospects, is contained in documents we have filed with the United States Securities and Exchange Commission, or SEC, and will be contained in all subsequent periodic filings we make with the SEC. These documents identify in detail important risk factors that could cause our actual performance to differ materially from current expectations.
Risk factors and uncertainties that could cause actual results to differ materially from current and historical results include, but are not limited to: effects of a highly competitive and consolidating market; our dependence on third parties for the manufacture and supply of our products; our dependence upon sales personnel, customers, suppliers and manufacturers; our dependence on our senior management; fluctuations in quarterly earnings; risks from expansion of customer purchasing power and multi-tiered costing structures; increases in shipping costs for our products or other service issues with our third-party shippers; general global macro-economic conditions; risks associated with currency fluctuations; risks associated with political and economic uncertainty; disruptions in financial markets; volatility of the market price of our common stock; changes in the health care industry; implementation of health care laws; failure to comply with regulatory requirements and data privacy laws; risks associated with our global operations; transitional challenges associated with acquisitions and joint ventures, including the failure to achieve anticipated synergies; financial risks associated with acquisitions and joint ventures; litigation risks; the dependence on our continued product development, technical support and successful marketing in the technology segment; increased competition by third party online commerce sites; risks from disruption to our information systems; cyberattacks or other privacy or data security breaches; certain provisions in our governing documents that may discourage third-party acquisitions of us; and changes in tax legislation. The order in which these factors appear should not be construed to indicate their relative importance or priority.
We caution that these factors may not be exhaustive and that many of these factors are beyond our ability to control or predict. Accordingly, any forward-looking statements contained herein should not be relied upon as a prediction of actual results. We undertake no duty and have no obligation to update forward-looking statements.
Executive Vice President and Chief Financial Officer
Vice President, Investor Relations
Ann Marie Gothard
Vice President, Corporate Media Relations