Target Information

Dental Holding has signed agreements to acquire Sanitaria Dental d.o.o. and SCL Logistika d.o.o. in Croatia, along with Sanitaria Kft. in Hungary, marking its sixth investment within the dental sector. Sanitaria Dental, established in 1997 and headquartered in Zagreb, is a leading distributor of dental supplies in Croatia, catering to approximately 3,500 dental clinics and 1,500 laboratories. Meanwhile, SCL Logistika, founded in 2013, provides integrated logistics services tailored for the dental and medical industries, enhancing the operational capabilities of Dental Holding in the region.

Sanitaria Kft, founded in 1990 and based in Budapest, is recognized as a top distributor of dental implants, equipment, and consumables in Hungary, serving around 5,000 dental clinics and 2,000 laboratories. Together, these acquisitions will expand Dental Holding's presence in five countries, projecting revenues exceeding EUR 110 million for this year.

Industry Overview

The dental supply sector in Central and Eastern Europe (CEE) is experiencing significant growth. This expansion is fueled by rising patient demands, an aging population, and rapid advancements in dental technology. The market is witnessing an influx of innovative dental products and services, further driving the need for efficient distribution networks.

Countries in the CEE region, such as Croatia and Hungary, are at the forefront of this transformation. The growing recognition of oral health's importance has led to increased investments in dental infrastructure and services, creating opportunities for companies to establish comprehensive networks that span multiple regions.

Furthermore, as the dental sector converges towards Western European consumption levels, stakeholders are focusing on enhancing operational efficiencies and technological integrations within their service offerings. This trend presents a promising outlook for dental distribution companies that can adapt and expand within this dynamic landscape.

As Dental Holding strengthens its market presence, it sets a benchmark for digital advancements and customer service in dental distribution, positioning itself as a leading player in the region.

Rationale Behind the Deal

This strategic acquisition aligns with Dental Holding's vision of consolidating the dental distribution market across the CEE region. By integrating Sanitaria Dental, SCL Logistika, and Sanitaria Kft into its operations, Dental Holding aims to leverage their extensive regional networks and expertise. The consolidation will not only enhance operational efficiencies but will also provide a robust platform for further growth and innovation in the dental sector.

The management team recognizes the significant growth potential in dental distribution and plans to capitalize on this momentum through strategic investments and operational enhancements.

Investor Information

Advising on this deal, Abris Capital Partners, a private equity firm focused on investing in CEE markets, has expressed its enthusiasm for expanding its footprint in the dental distribution industry. Partner Adrian Stănculescu highlighted the increasing patient needs and the transformative potential of technology in shaping future growth.

Investment Director Mihai Zamfir emphasized the strong fundamentals of the dental sector and the existing opportunity for market consolidation. Abris prioritizes strategic acquisitions, coupled with greenfield investments to foster long-term growth and establish a leadership position within the dental market.

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This acquisition appears to be a promising investment for Dental Holding considering the strong growth trajectory within the dental sector in CEE. With proven demand for dental services and a commitment from the combined companies to maintain operational excellence, the potential for sustainable revenue growth is significant.

The leadership team's focus on integrating advanced technology and enhancing service offerings positions the Group to set new industry standards, which may lead to increased market share and customer loyalty.

Moreover, maintaining operational leadership through local partnerships, as the founders of the acquired companies continue to run operations, ensures that the Group retains valuable local insights while expanding its regional influence.

Overall, this strategy to consolidate existing capabilities with innovative approaches could solidify Dental Holding's reputation as a top-notch player in the dental distribution market across Central and Eastern Europe.

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