11 February 2008
Merrill Lynch Global Private Equity ("MLGPE"), the private equity arm of Merrill Lynch & Co., has acquired Integrated Dental Holdings ("IDH"), the UK's largest owner of dental practices, from LGV Capital ("LGV") for an undisclosed amount.
IDH, headquartered in Bolton, is the UK's leading provider of dental services operating more than 200 practices serving more than 1.5 million patients nationwide with over 700 dentists and 1,700 employees. Under LGV’s ownership, IDH’s network has expanded from 127 practices to more than 200 through a combination of new openings and acquisitions, including the acquisition of Orthoworld in July 2007, expanding its services into specialist orthodontics and implants.
IDH is committed to NHS dentistry and to expanding its services through working closely with Strategic Health Authorities, Primary Care Trusts and Local Health Boards across the UK to create new NHS dental practices and additional dental access for NHS patients.
MLGPE plans to continue the leadership of the current management team headed by David Hudaly as Chief Executive and including Andy Morris, Darrin Robinson, Lindsey Walker and Jo Weir.
Commenting on the investment, Eric Kump, a Managing Director at MLGPE said: "This is a very exciting opportunity for MLGPE. We are delighted to be supporting such a dynamic and high quality company, which has worked closely with the NHS to improve access to NHS dentistry across the country. The management team are committed to NHS dentistry, clinical excellence and staff development. We will support their plans to grow the business to better serve the dental needs of the population."
Commenting on the investment, Michael Mowlem, a Managing Director at LGV said: "IDH represented our fourth investment in the healthcare sector. We have backed the business during a period of significant growth and consolidated its position as leader in its market place through both organic growth and acquisitions. We would like to thank David, his senior management team, Chairman Gavin Casey and all the staff for their hard work in making this a successful investment for LGV but more importantly helping service the needs of the community providing professional and dental services. We are confident of their continued success."
Commenting on the acquisition, David Hudaly, Chief Executive of IDH said: "With the full backing of MLGPE, we will be able to lead the company through its next phase of development. Our focus on the NHS will continue, as we strengthen our position as a preferred provider of high quality dental care. IDH has built up a strong foundation for growth over the past twelve years and we have ambitious plans to further increase the number of dental practices and extend the range of services we offer patients. LGV has been a supportive partner of our business throughout its period of investment, which coincided with a period of great change in our industry. On behalf of the management and staff, I would like to thank LGV for their support and guidance."
Merrill Lynch Investment Banking and PricewaterhouseCoopers Corporate Finance acted as advisor to MLGPE and Hawkpoint Partners Limited acted as advisor to LGV and management.
Financing for the transaction has been provided by Bank of Ireland, Barclays, Merrill Lynch and RBS.
About IDH
IDH is committed to expanding its services through shared investment with Strategic Health Authorities, Primary Care Trusts and Local Health Boards across the UK to create new NHS dental practices and additional dental access for NHS patients. Headquartered in Bolton, IDH is the largest privately owned company operating NHS dental practices in the UK with some 200 practices and 700 dentists. The business serves around 1.5 million patients a year.
About LGV
LGV is a well established private equity firm operating in the UK mid-market. LGV’s investment focus is on backing highly motivated management teams in buyouts and buy-ins of businesses with attractive market positions and strong cash flows. Typically these investments would have an initial enterprise value in excess of £50m.
Sectors where LGV makes investments on behalf of its clients include leisure, healthcare, services and consumer products. LGV has been particularly active in the healthcare sector in recent years, having made investments in such companies as Craegmoor, a major player in the market for the provision of residential care for people with learning disabilities and for the elderly, with in total c220 care homes; Integrated Dental Holdings; Verna Group, a UK market leader in the supply of infection control products to the acute sector; and Classic Hospitals, an operator of 10 independent hospitals.
MLPGE
MLGPE is the private equity arm of Merrill Lynch & Co., Inc. Merrill Lynch is one of the world's leading wealth management, capital markets and advisory companies, with offices in 40 countries and territories and total client assets of almost US$2 trillion. As an investment bank, it is a leading global trader and underwriter of securities and derivatives across a broad range of asset classes and serves as a strategic advisor to corporations, governments, institutions and individuals worldwide. Merrill Lynch owns approximately half of BlackRock, one of the world's largest publicly traded investment management companies, with more than US$1 trillion in assets under management. For more information on Merrill Lynch, please visit www.ml.com.
