Development in Sale of {my}dentist
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- Published: Sunday, 06 April 2025 12:50
- Written by Peter Ingle
- Hits: 2378
In 17 years {my}dentist has grown from its genesis of 3 practices in the North West of England to become the largest dental corporate in the world, with nearly 550 Practices across the UK.
That period has seen many changes over and above its dramatic expansion under the Integrated Dental Holdings (IDH) banner. There has been the rebranding as {my}dentist in 2015, and then the acquisition of both Dental Buying Group(DBG) and Dental Directory(DD). Along the way the ownership of IDH itself has evolved.
Historically, private equity group Palamon Capital Partners bought dental corporate ADP, at the time the third largest dental operator in the UK, for £136m in 2009. At the end of 2010 Palamon partnered with PE firm Carlyle, to acquire competitor IDH, and in 2011 ADP and IDH were merged to become the UK’s largest dental corporate.
It diversified the business model with the acquisitions of DBG and DD, and transitioned the, until then anonymous, practice network to the {my}dentist brand in 2015.
In 2021, Palamon bought out Carlyle to become the sole equity sponsor, following which the now officially rebranded DD group was sold to an affiliate of the private equity firm Sun European Partners LLP, returning the firm to a pure dental services company.
There is a widely held perception that one business model for private equity in dentistry is to grow corporates and then sell them on within a few years to another private equity firm. Indeed, it can seem that the regular selling on is a vital part of the model. By which token, it is time for Palamon to sell {my}dentist on.
Financial news outlets are now reporting that firms including Bridgepoint, Cinven, and Triton are competing for {my}dentist. US investment bank Morgan Stanley is said to be in charge of an auction for the company.
According to Sky News, TDR Capital, the owner of supermarket chain Asda, has also been participating in the sale process, in which {my}dentist’s owners have put a valuation of approximately £900m on the company, though some reports suggested a final deal might be closer to £800m.
When the sale was first mooted some time ago, dental business coach Chris Barrow observed that this would be “an interesting moment in dental history.” In the year to March 2024 the business had a 47% private and 53% NHS split and was achieving a profit margin just under 15%. He wondered what the different effects on the whole market might be if it sold quickly and at a good price, against it taking longer to shift, and at a lower value. There was also the question of who the new owner might be.
There have been a series of failures of smaller corporates over the last few years and both BUPA and {my}dentist have had to shrink their estate and close some less viable practices. Given that {my}dentist sees over 5 million patients a year, it is safely in the too big to fail category. Despite this, there will be implications for the whole UK market, and seasoned observer Barrow commented earlier in 2025, “the Jenga blocks are most likely wobbling in anticipation.” This week’s news will have increased the wobble factor.
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