G Square Healthcare Private Equity LLP has acquired a majority stake in Dental Care Group (DCG) – a clinician-led dentistry business with 21 practices in the East and South East of England.
Financial details of the transaction have not been disclosed but the deal represents the first investment by the company’s third fund, G Square Capital III.
The founders will retain a significant shareholding and will continue to manage the business, which provides a range of NHS and private dental services.
G Square focuses exclusively on healthcare businesses in Europe, centred on mid-market projects with high growth potential. It typically provides between €30m and €60m of equity in each deal but can bring additional co-investment from its limited partners.
DCG is its fourth investment in the UK, where it holds stakes in education and children’s residential services provider Keys Group, care and support firm Accomplish (formerly Tracscare) and Pharmacy2U.
DCG is also G Square’s fourth investment in the dental sector – an area which is becoming increasingly attractive to investors looking for growth in fragmented markets underpinned by favourably demand. It has already implemented dental buy and build strategies in Switzerland, The Netherlands and France.
Investment director Oliver Hoenich said: ‘We are impressed by the tremendous achievement so far by the clinically-led management team of DCG and are determined to help them pursue their ambitious buy & build strategy…We believe that DCG’s management passion for delivering the best quality dental care as well as focus on the customer experience and dentist training makes them a highly valuable partner not only for the NHS, but also for private customers and for dentists joining the Group.’
The Board of Directors will be chaired by Ted Smith, operating partner of G Square; Laurent Ganem, founder and CEO of G Square and Oliver Hoenich, investment director of G Square will also join the Board alongside Sanjay Shah, CEO of DCG and Parish Vaid, co-founder of DCG.