Information on the Target

mydentist is the largest provider of affordable dentistry in the United Kingdom, operating over 500 dental practices and catering to approximately four million patients annually. The Company offers a range of dental services that include NHS dental care, myoptions private care, and Premium private care. With a robust workforce of over 3,500 dental professionals and more than 2,500 surgeries, mydentist stands out as the leading dental provider by revenue, the number of practices, and clinicians across the UK.

Since Palamon Capital Partners acquired a majority stake in 2021, mydentist has experienced significant growth, driven by better accessibility to affordable dental care, ongoing investments in digital infrastructure, and a dedicated effort to establish the UK's foremost dental practice network. This growth trajectory is a testament to the company’s commitment to enhancing dental care accessibility for both NHS and private patients.

Industry Overview in the UK

The UK dental market has been evolving rapidly, particularly in the wake of increasing demand for affordable dental care. The shift towards providing inclusive dental services has gained momentum due to the rising cost of dental care and a broadening awareness of oral health among consumers. As a result, more patients are seeking affordable options, which in turn has prompted dental practices to innovate and diversify their offerings.

The influence of digital technology on the dental industry is undeniable, with practices increasingly adopting digital solutions to improve patient care, streamline operations, and enhance the overall patient journey. This trend has led to a more efficient service delivery model that not only benefits patients but also ensures higher operational excellence for dental providers.

Additionally, the regulatory environment surrounding dentistry in the UK has evolved, encouraging growth and modernization in dental practices. The integration of technology and regression of traditional models has become vital for dental providers aiming to remain competitive and responsive to patient needs. As practices adapt to these changes, the focus on quality and affordability is expected to be a key driver for future growth.

Given these dynamics, companies like mydentist are well-positioned to capitalize on the trends within the industry by leveraging both their extensive networks and digital competencies to achieve better patient outcomes and operational efficiencies.

The Rationale Behind the Deal

The partnership between Palamon Capital Partners and mydentist has facilitated a significant transformation within the Company, focusing on enhancing its offerings and expanding its presence in the UK dental market. With the divestment of its non-core product distribution business, mydentist was able to streamline its operations, directly investing capital in growth initiatives and infrastructural improvements.

Moreover, the recent acquisition by Bridgepoint represents a strategic move to strengthen mydentist’s future growth potential. By partnering with Bridgepoint, mydentist aims to leverage the deep market knowledge and resources that the new investor brings to effectively accelerate its growth trajectory and further enhance its value proposition in affordable dental care.

Information About the Investor

Bridgepoint is a prominent investment firm with international reach, known for managing funds that invest in mid-market companies across Europe. With a focus on both growth and sustainability, Bridgepoint partners with businesses to help them scale and transform, driven by a commitment to operational excellence and strategic development.

Their extensive experience in various sectors, including healthcare, positions them uniquely to support mydentist in realizing its vision of delivering high-quality and affordable dental services. Bridgepoint’s investment philosophy aims to foster long-term growth and innovation, making them an ideal partner for mydentist as it enters a new phase of expansion.

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The sale of Palamon's majority stake in mydentist to Bridgepoint has significant implications for the company and its ongoing strategy. Given the recent organizational restructuring and focus on core dental services, this transaction is viewed positively as it provides mydentist with enhanced resources to further solidify its position in the market. The increased support from Bridgepoint is anticipated to catalyze continued investments in infrastructure, technology, and talent acquisition.

Furthermore, mydentist's growth trajectory since 2021 reveals a solid foundation for future success, backed by strong organic EBITDA growth and an impressive return on investment for Palamon. This strong performance indicates resilience and long-term viability, making the investment appealing from both a financial and operational perspective.

Considering the growing demand in the UK dental market for affordable services, mydentist is well-placed to capture a significant share, especially with the backing of Bridgepoint. The transition suggests a promising outlook for the brand, with strategic initiatives expected to enhance patient care while expanding operational capabilities.

Overall, the deal appears to be a sound investment that not only benefits mydentist but also aligns well with the evolving landscape of the dental industry in the UK. As the company embarks on this new journey with Bridgepoint, stakeholders can expect a concerted focus on innovation and patient-centered growth, further establishing mydentist as a leader in affordable dentistry.

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