UK law firm Dundas & Wilson has advised the management of one of the UK’s largest providers of NHS dental care in a £136 million private equity-backed management buy-out.
London-based corporate partner Simon Sale led the D&W team advising the management of Associated Dental Practices Ltd (ADP), the second-largest provider of NHS dentistry in the UK with 122 practices serving 1.5 million patients.
ADP was acquired by Palamon Capital Partners, which took a majority stake in the business, from Smith & Williamson, the administrators of Kaupthing Capital Partners, the former private equity arm of Kaupthing Bank hf, and from Management.
Palamon, alongside co-investors AlpInvest Partners, Morgan Stanley Alternative Investment Partners and LDC, have invested £72m.
The transaction also involved refinancing the business with a senior debt package of £37.5m, provided by Lloyds TSB Corporate Markets Acquisition Finance and Royal Bank of Scotland. The senior lenders have also made available a significant acquisition facility to support the continued growth of ADP.
Simon Sale said: “This was a very complex deal for a number of reasons, not least of which was the fact that the transaction was orchestrated following the administration of Kaupthing, the previous owner.
Palamon knew that ADP was a solid business with very strong leadership. There has been a lack of substantial transactions in the market so to put together a debt and equity package like this was a great achievement and testament to the high regard in which ADP is held.”
Simon Sale leads the private equity team at D&W and can be contacted at simon.sale@dundas-wilson.com or 0207 759 9917.
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