A private equity fund invests in dentistry
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Are there plans for further investments in dentistry? Tar Heel Capital (THC) fund has just invested in 70% of shares of the company Estetique from Polanica-Zdroj, which operates three dental centers and focuses on aesthetic dentistry. The company also runs laboratory with digital diagnostic equipment.
Consolidation on dental services market: attractive for a private equity fund?
This is our first step towards the consolidation of the dental market, which is still very fragmented in Poland. Only a few percent of surgeries operate within large chains. For comparison – in Spain and Great Britain the dental services sector is already consolidated in over 25%. Such a structure of the Polish market and its constant growth encourage investments, both in the form of opening new offices and acquisitions – Jacek Przybyłl THC’s investment director said.
The list of potential purchases may be long, as the private dental services market in Poland is a very prospective and fragmented segment, according to PMR data. In 2019-2024, the average annual growth rate (CAGR) may reach over 7% (forecast before the coronavirus pandemic).
THC will invest €100m
According to the fund’s July 2020 statement, a third THC fund was launched in July 2019, which is to allocate more than €100m of its own funds for the acquisition and development of Polish enterprises over the next 6 years. Additional debt financing means that companies and their owners may receive as much as one billion zlotys in transactions.
The fund already has a successful investment in health, namely in Tomma imaging diagnostic facilities. As a result of the development and acquisition, THC has increased its revenues almost seven times. In 2019, the fund finalised the sale of Tomma to PZU Zdrowie.