%HenrySchein (NASDAQ: $HSIC) is a small-cap stock that is generating a lot of investor interest lately.
Based in Melville, New York, the company is the world’s largest distributor of %Healthcare products and medical devices.
Currently, Henry Schein has operations in 33 countries worldwide, generates $12 billion U.S. in annual revenue, and has more than 25,000 employees.
Yet despite its big operations, Henry Schein remains a small-cap stock with a market value of $9.96 billion U.S.
The stock hasn’t set the world on fire, having risen only 7% in the last 12 months and 16% over the past five years. However, that might be about to change.
While Henry Schein seldom gets any media attention, the company recently generated headlines on reports that private equity firm KKR (KKR) has taken a stake in it.
Specifically, KKR has taken a 12% stake in Henry Schein and says it will work with the company and its leadership team to improve operations and performance.
KKR has an option to increase its stake in Henry Schein by up to 15%.
As part of the deal, two KKR representatives — Max Lin and William K. Daniel — will join the board of directors at Henry Schein as independent directors.
Lin leads KKR’s healthcare team and Daniel previously worked at another medical device company, Danaher Corp. (DHR).
This is the kind of activist intervention that many investors love.
Shareholders of Henry Schein have been calling on the company to lower expenses and replace Chief Executive Officer (CEO) Stanley Bergman who has run the company since 1989.
Time will tell how effective KKR is at influencing Henry Schein’s business and future direction, but positive change appears to be underway at the company.
