PPM to buy Permira dental firm for €110m

PPM Ventures has announced the €110 million acquisition of Müller & Weygandt, a German dental distributor, from fellow UK private equity firm Permira and other shareholders.

Müller & Weygandt (M&W), the German dental distributor, has signed an agreement to be acquired by UK private equity firm PPM Ventures for €110 million ($135 million). The deal is subject to regulatory approvals. 

Based in Büdingen, M&W specialises in dental mail order distribution in Germany, with a particular focus on the distribution of dental consumables and small appliances. The company is forecast to generate revenues of approximately €72 million in 2004, and currently employs 100 staff.

“The acquisition of M&W, which is PPM’s fourth healthcare transaction in Europe this year, represents a well positioned business opportunity with considerable scope for growth and long-term value creation,” said Guido May, an investment director at PPM.

M&W was formerly part of German dental business Demedis, which was acquired by Henry Schein of the US from Permira in July 2004. Following advice from the German regulatory authorities, M&W did not form part of the acquisition.

Royal Bank of Scotland provided bank facilities for the PPM deal, in which M&W’s senior management have re-invested alongside PPM. PPM was advised by Sal Oppenheim Jr & Cie and Baker & McKenzie. The sellers, including the Permira Funds, were advised by JPMorgan and Lovells.

PPM’s recent deals in the healthcare sector include the $575 million acquisition of Pharmacia Diagnostics from Pfizer; the $312 million purchase of Sterigenics International from Ion Beam Applications; and the £178 million divestment of Oxoid Group to Fisher Scientific International.

Earlier this month, PPM announced the appointment of Neil MacDougall as managing director in place of Jonathan Morgan, who is continuing his association with the company until the end of this year.

Together with PPM America Capital Partners, PPM Ventures jointly controls approximately $4 billion (€3.3 billion) in committed capital across the globe.