Integrated Dental Holdings ‘looking at £1bn flotation’
INTEGRATED Dental Holdings, the Bolton-based company which operates the country’s largest privately-owned dental chain is weighing-up a Stock Market listing.
A value of more than £1bn has been mooted for IDH, which has plans to grow from more than 550 clinics to 1,000 over the next five years.
A statement on its website said: “IDH and its major shareholders are exploring the possibility of a listing on the London Stock Exchange.
“At this stage no decisions have been made [and] all options remain open to the group.”
Currently backed by US private equity giant Carlyle Group, IDH is said to have engaged Credit Suisse and Goldman Sachs to work on the flotation,.
According to bondholder filings for the final three months of 2013, earnings before interest, tax, depreciation and amortisation for the financial year to date rose by 21% to £48.7m.
The group is chaired by former Capita chief executive Paul Pindar, who in an annual review posted on the website said that since the end of 2013 IDH has successfully raised £400m in the UK high-yield bond market and £100m of new acquisition funding.
He states “DH is now ideally placed to pursue its five-year growth strategy to increase the current 550 practices operated by the group to over 1,000 and annual revenues to over £650m.”
IDH was founded in 1996 and backed by Luke Johnson, the entrepreneur who previously owned Pizza Express. Mr Johnson and his partners sold IDH in 2006 for just over £100m, with the private equity arm of Merrill Lynch among its subsequent owners.
The company was created in its current form from the amalgamation of IDH and Associated Dental Practices in 2011, and now treats some five million patients each year.
Among its recent projects has been opening dental clinics inside several Tesco stores as part of a plan to delivering affordable services to patients in locations and at times which are convenient and accessible.
In the 12 months to December 31 2013 IDH grew EBITDA from £52m to £56m and revenues from £310 to £349m. The lion’s share of revenues – some £300m – comes from the NHS.
