Buyout

Investment

2014

Turnover (2016)

€ 81.5. m

Personnel (2016)

790

Funds’ ownership (diluted)

54,00 %

Website

The most recognised dental care service chain in Finland decided to boost its growth with a new owner

Oral Hammaslääkärit is Finland’s most recognised dental care service chain*, offering dental care in 43 dental clinics in 28 cities all over Finland. In addition, the chain includes three dental laboratories.

CapMan Buyout’s journey with Oral begun in 2013 when Oral’s Board of Directors started mapping strategic alternatives as part of Oral’s long-term strategic planning. As part of that planning Oral reserved for selected domestic and foreign parties a possibility to suggest preliminary strategic arrangements, including tender offering for Oral’s shares. CapMan Buyout was invited by Oral's financial advisor to participate in the process, which suited the team well; Oral had been on CapMan Buyout's long list of potential investment targets for several years due to its leading position in the attractive dental care sector. Oral had been able to show strong sales growth since its establishment and lately also the profitability had improved, making it an interesting investment.

CapMan Buyout acquired the majority of Oral Hammaslääkärit shares in the summer 2014, and since then the company has continued its expansion all over Finland.

The growth of oral and dental care services supports Oral’s strategy

The private oral and dental care market has been growing strongly in the past few years. Private sector growth is mainly driven by the challenges of the public sector in responding to the growing service demand and the increasing demand for more complex and expensive treatments. These factors are further supported by an ageing population, the increase in purchasing power, the development of new treatments, and the increasing requirements imposed on oral and dental health and appearance.

We want to be a strategic Finnish owner for Oral and to focus on growth and active development of the company together with the management, dental professionals and other personnel of Oral

”We believe that the oral and dental care market offers Oral good potential for growth over the long term. We want to be a strategic Finnish owner for Oral and to focus on growth and active development of the company together with the management, dental professionals and other personnel of Oral,” said CapMan Buyout’s Partner Jan Mattlin in 2014.

In addition, the fragmented market creates further growth opportunities. There are over 1,200 companies in the Finnish oral and dental care market, creating for Oral a possibility for market consolidation and growth through acquisitions. The growing prevalence of a chain-based approach in dentistry services provision is also supported by the need to invest in digital services. The recently introduced e-prescription and the national e-health archive, coming into force in 2017, obligate all sector operators to modify their current registration practices. The necessary changes in the information systems are massive. As a pioneer in its industry, Oral is prepared for the changes and able to implement them before the effective date. Investments in digital services are relatively expensive for smaller operators. Therefore, joining Oral offers them a possibility to fully focus on their core business without making large investments.

CapMan as an active owner

Collaboration with the new majority owner has been very smooth and positive. CapMan has supported Oral’s development and brought a professional approach to operational leading through strategy, operational development and reporting. The dialogue is supportive and rich in ideas and works well in reaching common targets. CapMan Buyout has its own role in our organisation,“ commented Oral’s CEO Martin Forss in the spring 2016.

CapMan has supported Oral’s development and brought a professional approach to operational leading through strategy, operational development and reporting

CapMan Buyout aims to be a strategic Finnish owner for Oral and to focus on growth and active ownership in order to build up the company together with management and the dental professionals working at Oral.

Oral’s objective is to be Finland’s largest and most recognized dental care service chain. CapMan Buyout sees potential in supporting Oral’s growth by enhancing its range of oral hygienist services as well as its other products and services. The new enterprise resource planning system at Oral will improve service quality, enhance sales, expedite bookings and facilitate the work of dentists. In small and medium sized regions, growth is also supported by acquisitions.

As economic growth slows down and competition intensifies in the private oral and dental care market, Oral is investing in quality: its target is to be the sector’s strongest brand, best employer and offer high-quality treatments and service to its clients.

Goals achieved today:

  • Acquisition of over 20 dental clinics as part of Oral
  • Establishment of two new dental clinics
  • Creation and implementation of the new growth strategy
  • Successful implementation of several development initiatives, including development of management systems, financial reporting and an investment programme for dentists
  • Launches of new products and services
  • New Board of Directors, with members supporting Oral’s development into Finland’s biggest dental care chain

Videos

'Kasvunrakentaja 2017' finalist Oral Hammaslääkärit (in Finnish)

Category: Buyout

07 March 2017

Case team