Form 4: KKR Affiliate Enters Equity Swap for Henry Schein Shares

KKR Group Partnership L.P. and its affiliates reported entering into a total return swap for 350,430 shares of Henry Schein Inc. common stock.

Summary

• KKR Hawaii Aggregator L.P., an affiliate of KKR Group Partnership L.P., entered into a total return swap (TRS) with a third-party financial counterparty.
• The initial hedge period for the swap was completed on December 5, 2025, setting the notional shares at 350,430 of Henry Schein Inc. Common Stock.
• The notional price per share for the swap was determined to be $73.40.
• The equity swap has an expiration date of July 16, 2027.
• Under the terms of the swap, KKR Hawaii Aggregator L.P. has the right to acquire, and the counterparty has the obligation to deliver, the 350,430 shares of Common Stock.
• The reporting persons, including KKR Group Partnership L.P., KKR & Co. Inc., Henry R. Kravis, and George R. Roberts, disclaim beneficial ownership of the securities except to the extent of their pecuniary interest.

Sentiment

Score: 7

Explanation: The entry into a total return swap for a substantial number of shares by an affiliate of KKR suggests a positive view on Henry Schein's future performance, although it does not represent direct equity ownership or voting rights.

Positives

• An affiliate of KKR has taken a significant derivative position equivalent to 350,430 shares of Henry Schein Inc. common stock, indicating a potential positive outlook on the company's future performance.
• The notional price of $73.40 per share provides a clear reference point for the transaction, suggesting a valuation perspective from a major investment firm.

Negatives

• The reporting persons disclaim beneficial ownership, meaning they do not directly own the shares or have voting rights, limiting their direct influence over the company.
• The transaction is an equity swap, which involves counterparty risk and does not confer immediate equity ownership or the full benefits of direct shareholding.

Future Outlook

NA

Management Comments

• Each of the Reporting Persons disclaims beneficial ownership of the securities reported herein, except to the extent of such Reporting Person's pecuniary interest therein.

Industry Context

KKR's investment interest in Henry Schein, a leading provider of healthcare products and services, signals continued institutional focus on the healthcare distribution sector, potentially driven by long-term growth trends in medical and dental markets.

Stakeholder Impact

• Shareholders: The transaction may be perceived as a positive signal of institutional interest in Henry Schein, potentially influencing market sentiment and share price.
• Employees, Customers, Suppliers, Creditors: No direct impact on these stakeholders is indicated by this specific derivative transaction.

Next Steps

• Settlement of the equity swap by July 16, 2027, which may involve KKR Hawaii Aggregator L.P. acquiring 350,430 shares of Henry Schein Common Stock.

Key Dates

Recommendation

The filing reports an affiliate of KKR entering into a total return swap for a significant number of Henry Schein shares. While this indicates institutional interest and a potential bullish outlook from KKR, it does not represent direct equity ownership or a fundamental change in Henry Schein's operations or financial health. Investors should hold and monitor further developments and the company's core performance.

Keywords

Henry Schein, HSIC, KKR, Equity Swap, Total Return Swap, Form 4, Beneficial Ownership, Investment, Healthcare