BC Partners buys DentalPro from Summit

Amedeo Goria
22 May 2017

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Buyout house BC Partners has acquired DentalPro, an Italian dental service, from Summit Partners.

Selling shareholders included Summit Partners, Italian holding company Vam Investments and other private investors. According to unquote" data, Summit held a 58% stake in the business, while Vam owned a 21% stake.

Following the acquisition, BC Partners (which owns Mergermarket Group, the parent company of unquote") will retain a controlling stake in the business, while the company's management team will own a minority stake, according to a source familiar with the situation. Italian publication Il Sole 24 Ore reported a current EV in the €350-400m range for the business.

During its two-year holding period, Summit supported the company's expansion through the acquisitions of two competitors, Pinerolo-based Giovanni Bona for €80m in June 2016 and Milan-headquartered Dentadent in July 2016. The acquisitions added 40 clinics to the group.

According to the source, BC Partners aims to boost the company's presence in the Italian market and support its expansion internationally through additional bolt-on acquisitions.

The investment is the second deal for the GP's 10th vehicle, BC European Capital X. Launched in January 2016, the fund secured approximately €4bn of commitments in September 2016, according to unquote" data. The GP expects to hold a final close in 2017, targeting €7bn. So far, more than 50 investors, including pension funds, fund-of-funds managers and insurance companies have committed capital to the fund.

Previous funding
In April 2015, Summit acquired a 58% stake in DentalPro, while existing shareholder Vam, alongside several high-net-worth individuals and the management team, acquired the remaining 42% stake.

Company
Established in 2010 and based in Milan, DentalPro manages 112 dental care clinics in Italy, offering general dentistry services as well as implants, prostheses and orthodontics. The company partners with local dentists and provides them with practice management support and training.

The business has 1,000 employees, and generated €130m in revenues and €30m in EBITDA in 2016, according to the source.

People
BC Partners – Nikos Stathopoulos (managing partner).
Summit Partners – Thomas Tarnowski (managing director).
DentalPro – Michel Cohen (founder, CEO).

Advisers
Equity – PwC (financial due diligence); Chiomenti (legal); Dickson Minto (legal); Facchini Rossi & Soci (tax).
Vendor – White & Case (legal).
Company – White & Case (legal).
Management – BonelliErede (legal).