THE private-equity arm of Merrill Lynch is getting its teeth into a deal to buy Britain’s biggest chain of dental practices.
Merrill Lynch Global Private Equity has acquired a majority shareholding in Integrated Dental Holdings, founded in 1996 by David Hudaly, chief executive. The sale is thought to value the business at about £300m, including its debts.
The US bank is buying its stake from LGV Capital, the private-equity arm of Legal & General, which had bought into the company nearly two years ago.
Last year it hired Hawkpoint, the corporate-finance firm, to find a buyer for its holding. It attracted interest from several rival private-equity investors, with Merrill, which is also providing debt finance and advised on the deal, emerging as the victor.
Bolton-based IDH has more than 200 practices, over 700 dentists, and looks after more than 1.5m patients every year.
Advertisement
LGV has now sold three healthcare-related businesses within a week. Last Monday it announced it would sell Classic Hospitals, operator of 10 private hospitals, and Verna, a medical equipment manufacturer.
The IDH deal is expected to generate a multi-million pound windfall for Hudaly and his boardroom colleagues. They are reinvesting much of the proceeds back into the business.