EAC invests in dental chain

European Acquisition Capital has led the £35m financing of ADP Dental Company from its EAC Fund III.

European Acquisition Capital (EAC), the pan-European venture capital company, has invested in ADP Dental Company, one of the UK’s largest dental corporate chains. This is the second investment from EAC’s third fund after last year’s acquisition of 5 à Sec, the world’s largest chain of dry cleaners.

ADP operates a chain of 23 general dental practices in the South East of England and is one of the 27 licensed Dental Bodies Corporate. The company was founded in 1985 by Chief Executive, Dr Ben Chaing and covers both NHS and private dentistry patients.

Jonathan Heathcote, a partner at EAC, believes that the investment in ADP, which plans to use the funding for acquisition purposes, will give EAC a strong position in one of the fastest growing healthcare sectors. “The UK dental market was estimated to be worth £3bn in 2000 and is projected to grow by 13% per annum over the next three years.”

“ADP is well positioned to maximise the growth potential in the market as its growth strategy is already underway through a combination of acquisitions and new start-up practices.”

EAC will have a majority equity stake in ADP with additional equity being provided by senior management. Jonathan Heathcote and Bill Robinson of EAC will join Richard Flaye on the ADP Board.

EAC was established in 1991, currently employing 10 investment professionals. EAC has total assets under management of E288m through its EAC I and II funds. It is currently in the process of raising its third fund.