Acquisition of dental service provider creates a wealth of opportunities

Acquisition of dental service provider creates a wealth of opportunities

03 Feb 2011

The Carlyle Group (Carlyle) recently announced that it has signed a binding agreement to acquire Integrated Dental Holdings (IDH), from Bank of America Merrill Lynch Capital Partners (BAMLCP), and simultaneously merge it with Associated Dental Practices (ADP), in partnership with private equity firm, Palamon Capital Partners (Palamon). Carlyle will hold a majority of the newly combined entity and Palamon will share joint governance. BAMLCP is fully exiting its stake in IDH. The proposed merger of IDH and ADP is subject to relevant regulatory approval. Financial details were not disclosed.
IDH and ADP are two leading providers of dental care in the UK, primarily focused on NHS dentistry, with close to 450 practices, treating more than 3.5 million patients per year. Carlyle and Palamon will invest in the business to expand the number of practices, enhance the quality of patient care and grow NHS, private and specialist dental services.  Furthermore, this investment will facilitate the company’s diversification into other primary care services and cosmetic treatments.
Richard Smith, CEO of IDH, who will lead the combined entity, said "Carlyle and Palamon have recognised that IDH and ADP are high-quality businesses with significant growth potential. This investment will allow us to provide more services across more practices with better quality of patient care in dentistry and potentially other primary healthcare fields too.

“Furthermore, the merger with ADP is a particularly exciting and progressive step for both organisations in terms of career opportunities and development for the management, dentists and support staff.” 

David Hillier, CEO of ADP, added, "Carlyle and Palamon’s combined financial strength, extensive network, and track record in the management of healthcare companies are great assets to IDH and ADP. We are delighted that our partnership with Palamon will continue and look forward to working with Carlyle.”

Eric Kump, managing director of Carlyle Europe Partners, commented, “IDH and ADP are UK market leaders in NHS dentistry and a merger between the businesses creates a wealth of opportunities for the new entity. We are delighted to have facilitated this unique transaction as we see long-term growth potential in the dental services sector. We are looking forward to working with the NHS to enhance patient access and value for services as well as provide the highest standards of care. Furthermore, we believe the business has the capability to extend into other local primary care areas consistent with the government’s stated objectives.”
Jonathan Heathcote, Partner at Palamon Capital Partners, also said, “We are delighted with our involvement in this significant transaction. It builds on our investment thesis focused on opportunities in the European healthcare services sector. We look forward to partnering with Carlyle in helping this combined business reach its full potential.”