BC strikes deal from Fund X as final close looms

The firm has invested in Italian dental services provider DentalPro as it continues to fundraise towards its €7bn target.

BC Partners has agreed its second deal from its new buyout fund, acquiring Italy-headquartered dental services provider DentalPro, according to a statement from the firm.

BC Partners is acquiring the business from Summit Partners, VAM Investments and other private investors. Financial details were not disclosed, but it is understood the business has an enterprise value of between €350 million and €400 million.

The company’s management team will make a significant reinvestment in the transaction, according to a source with knowledge of the matter.

BC Partners will fund the deal with capital from BC European Capital X, which is currently in market targeting €7 billion. The fund, which came to market in early 2016, has gathered more than €4 billion, according to PEI data, counting Los Angeles City Employees’ Retirement System, Teachers’ Retirement System of Louisiana, Tennessee Consolidated Retirement System, and Korea Investment Corporation among its investor base.

It is understood that the firm is on-track to hold a final close on the vehicle during the first part of 2017.

BC Partners declined to comment on fundraising.

Summit Partners acquired a majority stake in DentalPro in 2015 in a deal which saw existing shareholder VAM Investments reinvest, along with CEO and founder Michel Cohen. At the time of Summit’s acquisition, DentalPro operated 30 full-service clinics across Italy, most of which were positioned in shopping malls.

Having completed two acquisitions in 2016 to add more than 40 clinics, today DentalPro offers its services through 112 clinics across 40 Italian provinces. The company partners with local dentists to provide practice management support and training.

“As the market leader, it represents the best platform to consolidate the fragmented dental services market in Italy and expand internationally,” BC Partners managing partner Nikos Stathopoulos said in the statement.

Last month Summit Partners collected $4 billion for two of its latest funds, Summit Partners Growth Equity Fund IX and Summit Partners Venture Capital Fund IV, as reported by PEI. The growth equity fund closed on $3.3 billion, above its $3 billion target, while the venture capital fund exceeded its $600 million target to close on $730 million.

The return for Summit Partners on the sale of DentalPro was not disclosed.