A private equity fund invests in dentistry

Ten post jest także dostępny w języku: polski

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.

More information about current trends on the dental services market and the impact of the coronavirus pandemic on this segment will be discussed at the PMR Private Healthcare Forum 2021 on 10 September.

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