Inter-Risco leads €79m dental buy-and-build

Inter-Risco itself has committed €11.9m for a 100% stake in the platform, which has been named 32 Senses and has already acquired four dental clinics and launched three Greenfield units in shopping centres. Co-investors will be invited to join the deal.

Approximately 150 dental clinics and another 30 Greenfield clinics will be rolled out between now and 2014. Due diligence is currently being conducted on 80 potential acquisitions. Several vendors will retain minority stakes.

The dental market is extremely fragmented, yet growing strongly within Portugal. It is driven by healthy margins, family-run businesses and an absence of national and multinational players. 32 Senses therefore aims to become the leading firm in the local market by increasing its brand awareness, integrating its back-office activities, procuring resources as a large organisation and offering additional services such as dental care insurance and financing solutions.

Inter-Risco's ultimate aim is to exit 32 Senses to a foreign trade buyer or institutional investor, by which time it expects the business to be generating revenues of €88m.

The investor injected the capital via its Fundo Inter-Risco II vehicle, which announced a first close on €75m in November 2010.

Debt
A leverage package for this transaction is currently under negotiation with several banks.

Company
Porto-based 32 Senses is a buy-and-build platform that aims to become the largest firm in the Portuguese dental services sector.

People
Afonso Barros, managing partner, led the deal on behalf of Inter-Risco and joins the company's board alongside partner João Amaro. César Santos and Jorge Barreiros are the respective CEO and CFO of 32 Senses, while dentist Carlos Falcão has been appointed CTO.

Advisers
Equity – PricewaterhouseCoopers, Ivo Faria (Financial due diligence); Telles de Abreu & Associados, Francisco Espregueira Mendes (Legal).

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• Topics
• Southern Europe
• Healthcare
• Buyouts
• Buy-and-build
• Portugal
• Inter-Risco