Investee Company – James Hull Associates (UK)
Investee Company Business Type – Provides private dentistry services
Type of Financing – Expansion
Equity Providers – 3i Group
Equity Leader (Individual) – Paul Oldham, 3i Group
Debt Providers – Bank of Scotland Integrated Finance
Debt Type – Senior debt, mezzanine
Debt Leader (Individual) – Alan Ross, Bank of Scotland
Equity Amount – £5 million
Total Deal Value – £21 million
Other Advisors – M&A Solicitors, PricewaterhouseCoopers, 3i Legal, Maclay Murray & Spens
Comments – James Hull Associates (JHA), the largest chain of private dental practices in Britain, has announced a second round financing of £21 million. 3i’s Bristol office contributed £5 million alongside a £16 million debt and mezzanine facility provided by Bank of Scotland Integrated Finance. The bank has also taken a minority equity position. An additional £2.5 million of fixed asset finance is also under negotiation.
For 3i the investment was a return to a company which it first backed in 1997, and of which it currently owns 37.5%.
JHA has entered into a strategic alliance with the Eastman Dental Institute and recently acquired the Eastman ICED private practice in London. The new raising is expected to be used to facilitate expansion plans for its specialist private practices throughout the country.
The company has already recruited new management to join James Hull, group founder and CEO in overseeing its plans for expansion. Nick Irens joins JHA as chairman, previously chairman of Cannons Group PLC, Peter Smith as managing director, formerly leader of Boots Dental operations, and Sarah Watson-James, previously in a senior marketing role with Specsavers.