Aksia-backed Primo invests in L Catterton's CareDent

Alessia Argentieri
20 February 2020

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Aksia-backed dental clinic chain Primo Group has invested in L Catterton's dental specialist CareDent.

CareDent will be acquired by Primero, the holding company of Primo. The merger will become effective in 2021.

The two companies will continue to operate under their own brands. Primo CEO Mirko Puccio will lead the combined group, which will operate a network of 155 clinics. Following the merger, the GP expects the group to generate an EBITDA margin of 20% from revenues of around €90-100m in 2021.

Aksia will finance the deal with equity from its fifth fund, which is now almost 20% deployed. The fund expects to hold a second closing by April 2020 on €150m and hit its €200m target by the end of the year.

Aksia acquired a majority stake in Primo from healthcare-dedicated GP Archimed and minority shareholders. The GP bought a 72% stake via its fifth fund, while Primo CEO Mirko Puccio reinvested in the business alongside the GP and retained a minority stake of around 25%. The remaining 3% stake was acquired by Equita. Banca IFIS provided a senior debt package of €20m, including an undrawn capex line of €5m for further acquisitions. In addition, Equita deployed a €7m mezzanine facility via its private debt fund.

L Catterton acquired a majority stake in CareDent in 2016.

Company
Established in 2004 and headquartered in Grassobbio, near Bergamo, CareDent operates a network of dental clinics providing a full range of dental services, including hygiene and conservation, implantology and prosthetics, orthodontics, endodontics, and periodontology.

The company was originally founded in Spain and in 2009 entered the Italian market, where it built a network of 65 clinics located across northern Italy.

People
Aksia Group – Marco Rayneri (CEO); Martina Di Gioia (investment manager).
Primo Group – Mirko Puccio (CEO).

Advisers
Equity – EY (corporate finance); Russo De Rosa Associati (tax); De Luca & Partners (legal).
Company – Fineurop Soditic (corporate finance); BonelliErede (legal).