Henry Schein (NSDQ:HSIC) said it’s shed of 1 of its unprofitable wholesale dental distributors in the Middle East, a move that will cost the company between $11 and $13 million.
The dental and medical device company said it plans to exclude the 1-time item from its 3rd-quarter earnings, which the move is expected to hit for $11 million to $13 million, or 13¢ to 15¢ per share.
It’s all part of an overall strategy to target office-based dental practices as primary customers, according to a press release.
Last month, Henry Schein made 3 crucial acquisitions that together represent annual sales of nearly $61 million. The company said the acquisitions put it on track with its 2 year strategic plan. CEO Stanley Bergman said losing the Middle East partner fits in with its plan to focus on sales to doctors’ and dentists’ offices.
"Henry Schein’s strategic plan is focused on growing our presence as the leading global distributor of products and related value added services in the market segments we serve," Bergman said in prepared remarks. "As part of that plan, we have elected to divest our interest in this non-core holding to further align our investments targeting our primary customer base, the office-based practitioner."
