Dental clinics operator Abano Healthcare Group Ltd has agreed to acquire 84% stake in Australian dental roll-up 1300Smiles for an enterprise valuation of A$165 million ($120 million), according to an announcement.
The acquisition was conducted through Adams Aus Bidco Pty Limited (Abano Bidco), a member of the Abano Healthcare Group (Abano Healthcare).
“Abano Healthcare is a highly complementary partner for 1300Smiles with a strong Australian footprint of 106 practices, largely operated under the Maven Dental brand, to which 1300Smiles’ high quality portfolio of 33 practices will be added if the scheme is successful,” 1300Smiles said.
To assess the proposal, 1300Smiles set up an independent board committee that has also backed the deal.
Abano Healthcare was acquired by BGH Capital and its institutional partners including Ontario Teachers’ Pension Plan Board in 2020.
“The proposal we have developed in consultation with 1300Smiles delivers real value to shareholders, and recognises the impressive track record of the business over many years. With BGH Capital and Ontario Teachers’ significant experience investing in healthcare businesses around the world, we look forward to supporting the highly skilled 1300Smiles team, supporting their clinicians to maintain strong outcomes for dentists, patients and driving the next phase of growth,” said Abano Healthcare CEO Sinead Ryan.
Abano Healthcare Group Limited is the operator of one of the largest trans-Tasman dental groups, comprising Lumino The Dentists in New Zealand and Maven Dental Group in Australia.
1300Smiles was founded by Dr Daryl Holmes and has been listed on the Australian Stock Exchange since early 2005. The company has 31 full-service dental facilities in ten major population centres in Queensland, Sydney and Adelaide.