Henry Schein Gains Majority Interest in Large Practice Sales LLC

Henry Schein Gains Majority Interest in Large Practice Sales LLC | Image Credit: © Henry Schein, Inc

Henry Schein, Inc, is expanding its Dental Practice Transaction business with the acquisition of a majority ownership interest in Large Practice Sales LLC (LPS), a company that helps engineer partnership transactions for larger general practice and all dental specialists with Invisible Dental Support Organizations (IDSO).

LPS—with headquarters in Irving, Texas—had 2022 net sales of approximately $40 million, according to a Henry Schein press release on August 2. Henry Schein states it expects the LPS transaction to be neutral to 2023 non-GAAP diluted earnings per share and accretive thereafter.

Financial terms were not disclosed, but joining Henry Schein from LPS are co-founders Chip Fichtner and Matt Wilkins. Fichtner, who will remain as Head of Development, and Wilkins, who will continue in his role of Head of Operations and Transaction Execution, will hold a minority ownership interest in the business, along with other key members of LPS’ management team, according to Henry Schein.

“LPS is complementary to our existing Dental Practice Transition business and commitment to provide value-added services to our customers,” says Stanley M. Bergman, Chairman of the Board and Chief Executive Officer of Henry Schein, Inc, in the press release. “For many years, we have had a successful practice transitions group dedicated to assisting smaller and mid-sized dental practices. By combining our expertise, we can effectively meet the needs of a broader range of dental professionals and ensure their success throughout the transition process.”

Henry Schein is the world’s largest provider of health care products and solutions to office-based dental and medical practitioners, and Fichtner expects the acquisition by Henry Schein to only further the organizations’ growth and success.

“Henry Schein is the premier brand within the U.S. dental profession, with widespread recognition among general practice dentists and specialty practitioners alike. LPS has enjoyed rapid growth since our inception 7 years ago, and this combination with Henry Schein is the logical next step to accelerate our reach and enhance our mutual success,” Fichtner says in the press release.

According to the LPS website, the company enables dentists of all specialties to monetize a part of their practice value with a silent partner for cash today at today’s low tax rates. Clinicians continue as owners leading their practice under the doctor’s brand, team, and strategy for years or decades. The process allows clinicians to gain the resources of a larger partner to grow faster and more profitably, and often experience a dramatic increase in the value of their retained ownership.
“We pride ourselves on bringing creativity to the table in structuring win-win solutions, offering dentists the flexibility to continue leading their practice, retain an equity stake in their business, and maintain their practice's brand, culture, and autonomy,” adds Wilkins in the press release. “We typically represent dental professionals eager for a strategic partnership to help grow and scale their practices. This shared commitment to customer success tightly aligns LPS and Henry Schein.”