Dentist chain IDH opens wide for £1bn autumn stock market float
Stock market listing of Integrated Dental Holdings will see senior managers at the UK’s biggest dentist chain collect a £150m windfall.
Europe’s biggest dentist chain has revived plans for a £1bn London stock market float after overcoming fears about the outcome of the general election.
A listing of Integrated Dental Holdings (IDH), which has over 600 practices across England, Scotland and Wales, will spell a £150m pay-day for the company’s senior managers, who own a 15.5pc stake in the company.
IDH is currently majority owned by Carlyle, one of the world’s largest private equity firms.
The dentist chain is the largest provider of public dental care in the UK, with around 85pc of revenues generated from NHS patients. However, the latest accounts filed by the group’s parent company, Turnstone Equity, reveals that IDH is gradually increasing sales from its private and specialist dentistry practice.
IDH, which employs over 3,370 dentists and nurses, made £346m of sales from the NHS and £54m from the private sector. Total pre-tax profits were £18.1m.
IDH was founded in 1996 by Luke Johnson, the Pizza Express entrepreneur and Patisserie Valerie owner. He sold the business in 2006 for just over £100m to the private equity arm of Merrill Lynch.
Carlyle then bought a majority stake in IDH and merged it with Pamplona Capital Partners’s rival dentist firm, Associated Dental Practices, in a £600m deal in 2011.
It is understood that Carlyle which owns just under 65pc and Pamplona, which owns around 20pc, has also held conversations with other private equity buyers about a sale, but these failed to reach an agreement on price. Sources said that a listing is now their preferred option and they have told bankers at Goldman Sachs and Credit Suisse to float the business in the autumn.
The group first confirmed that it was considering a stock market listing in June last year.
Float candidates are currently weighing whether to rush through a listing before the summer break or wait until the City returns to work in September.
Cyber security firm Sophos and leisure parks operator CenterParcs are also said to be considering the timing of their billion pound listings. Industry bankers caution that as seen in other examples of RAC, Travelex or Virgin Active, private equity firms looking to exit businesses will also gladly take knock-out offers for their porfolio companies.
Here are some financials from the holding company Turnstone Equity