Dental B2B Business - Brief info

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Dental B2B Business – Info ReviewProduct Distribution and Services

Sector: Healthcare

Jan-2017*IBR’s Info Reviews are not research reports, but a handy compilation of relevant information

Market size estimates

• Global B2B dental equipment and consumables market is estimated to at ~USD50B by BCC Research.

• This implies US market size of around USD 16B. Size of the US dental services market (retail value), is around USD 160B. This makes the B2B products and services market just under 10% of the retail value (assuming 5-10% of the USD16B is capital equipment).

• In India, the ratio of consumables to total retail dental income is between 15-20% (higher than global standards, due to lower pricing of dental procedures)

• Indian market for dental supplies is estimated at around Rs20-25B. Almost all of this – equipment, consumables – is imported

• US B2B market is more concentrated than ROW. Top 2 companies have ~30% of the market. Indicates scope for emergence of a B2B scale player in India as well.

www.indiabusinessreports.com 2Dental Distribution Business

Segments

Leading Global DistributorsA few lists and profiles

Henry Schein


(USD)

Market Cap 13.39B

Total Revenue 10.63B

EBITDA 921mNet Income 509mEmployees 17000Dental Business 5.30B

• Largest distributor of dental products and services in the world. • Also claims No 1 status in USA, EU and ANZ.

• Serves 90% of dental practices; 70% of dental labs in the US• Serves 65% of dental practices in EU• Services 80% of dental practices in ANZ

• Over 2600 field staff• Operates in 33 countries• Strong growth track record; revenues have grown at 15% CAGR over 2 decades• Logistics

• 62 warehouses with 4.5million sft of storage space• Has done 11 acquisitions in the last 4 years to build global dental presence

including Japan, Brazil, Italy, Poland

Source: Investor presentation

Henry Schein’s dental acquisitions



Patterson Companies Inc

Items (USD)Market Cap 4.25B

Total Revenue 5.38B

EBITDA 430mNet Income 186mEmployees 7000Dental Busines 2.5B


• Dental business is 47% of revenues, 135 years in dental business• Revenue a mix of consumables, equipment and services• North America’s largest provider of capital equipment, including CAD/CAM

& digital technology • 2800 employees, including 1500 direct sales reps, 400 customer support,

300+ clinical trainers on rolls• Claims industry’s most extensive digital training capabilities• 105,000 SKUs, strong focus on logistics

• 79 warehouses, 2.6 million sft of storage space• 23,000 orders per day• 96% of customers served in one day• 500 fleet• 1400 associates involved in deliveries

• Pattersondental.com is its ecommerce initiative.

56%33%

11%

Dental Sales Mix

Consumables Equipment Training


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