Wesleyan strengthens dental service with new acquisition

BIRMINGHAM-based Wesleyan Assurance Society has strengthened its service offering to the dental profession with the acquisition of Shropshire’s Practice Plan Group in an undisclosed deal.

Practice Plan, based in Oswestry, is the leading provider of practice-branded dental membership plans, and Medenta, one of the leading providers of patient finance to UK dental practices.

Craig Errington, Wesleyan’s Chief Executive, said: “The acquisition of Practice Plan is part of a larger strategic growth programme that we are embarking upon over the coming years. Until now we have largely focused on providing personal financial services to dentists. Practice Plan is a strong and successful business and will play an integral role in helping us to grow our commercial offering to dental practices.

“Practice Plan offers a great synergy with the Wesleyan brand; it has an excellent reputation within the dental profession and has built up strong relationships with a large number of dental practices nationwide.  We can develop these links further to provide a more comprehensive financial service tailored specifically to this market.”

Practice Plan was founded in 1995, and has been acquired from Dunedin Capital Partners and shareholders; Practice Plan’s shareholders were advised by Deloitte, and the transaction is subject to regulatory approval.  It supports over 2,000 practices and 600,000 individual plan members nationwide.

Wesleyan, whose other core customer markets include doctors, lawyers and teachers, was advised by Fenchurch Advisory Partners.

A Manchester-based team from Addleshaw Goddard advised Practice Plan Group. The Addleshaw Goddard team was led by Corporate Partner Roger Hart, and included Rabia Burton, Cat Concannon, Sophie Cochrane, Paul Harris, Richard Oman and Carly Mather.

Roger Hart said: “We are pleased to have been able to advise Practice Plan Group on this strategic acquisition by Wesleyan which is one of the UK’s leading mutuals, and already a leading provider of specialist financial advice and services to dentists. The combination with Practice Plan will strengthen Weslyan’s position in the dental market and provide additional opportunities to grow its market share.”

The Wesleyan Group had in excess of £5.2bn of assets under management at December 31, 2012.

Wesleyan Chairman Bryan Jackson said: “Wesleyan is in a position of financial strength and so can grow to the benefit of our customers and members.  Our interests lie in opportunities that will develop our offering for our professional customers. This acquisition is a clear indication of our commitment to be the provider of choice for dental professionals.”

Nick Dilworth, Managing Director of Practice Plan, said: “Practice Plan is pleased to become part of one of the UK’s financially strongest mutuals with a great heritage and a reputation for customer service and product performance.”

While the value of the deal has not been disclosed, Dunedin said the sale had yielded a 2.8 return on its investment.

Since Dunedin invested in the business, membership fees collected have increased to more than £80m per annum. 

As part of Dunedin’s investment strategy Practice Plan has embarked upon an international expansion targeting the Australian market. It has also completed two transformational acquisitions; Isoplan a UK dental plan provider, and Medenta, the market leader in dental patient finance.

Dunedin also introduced Tony Lochery as chairman of the business, recruited Nick Dilworth as managing director and further strengthened the management team with a new financial director, COO and IT director.
 
Oliver Bevan, investment director at Dunedin who sat on the board said: “Practice Plan has shown consistent growth, both organically and by acquisition despite challenging market conditions.”

Wesleyan was also advised on the deal by Pinsent Masons.

Corporate partner Paul Harkin, senior associates Michael Lakin and Emma Callow and solicitor Phoebe Matthews led a cross-disciplinary team.

Harkin said: “We were delighted to advise Wesleyan on such a significant deal which strengthens the group’s footprint in the dental sector.”