Oasis Dental Care Ltd
The UK dentistry market is experiencing strong growth, and Oasis is now well placed to benefit as the only privately-owned dentistry group serving an equal mix of both NHS and private patients. Led by a very strong management team, the company has also identified acquisitions and operational improvements which will help its continued expansion.
An expanding sector
Oasis Healthcare is one of the leading dentistry chains in the UK, with over 150 practices and 500 dentists. The company offers the full range of general and specialist dentistry, serving both the NHS and the private market.
The dentistry sector is expected to grow at around 5% a year, and Oasis is in a strong position to capitalise on this growth. We acquired Oasis Healthcare in September 2007 for £125 million.
A thorough understanding of the market
The acquisition of Oasis Healthcare was a public-to-private transaction triggered by Duke Street. Competing with only one strategic bidder, we put our success down to our knowledge of the market and the fact we had exclusive access to the management team. A new Chief Executive, Justin Ash, was then appointed. Justin has considerable experience of multi-site retail operations and working with the NHS, most recently as Managing Director of Lloyds Pharmacy.
Strong growth predictions
Oasis is one of the leading chains in the UK dentistry sector, which is expected to grow at around 5% a year, in NHS and private markets.
Dentistry in the UK is open to a more professionalised management approach and consumer proposition, and Oasis plans to deliver these and so build market share in both private and NHS segments.
In general the trend towards larger and more exacting professional environments in dentistry allows Oasis to differentiate itself from independent, smaller practitioners. In the private market, more consistent patient care and service range will grow patient numbers, with a particular focus on growing specialist capability in areas like implants. These are hugely underpenentrated compared to other markets like the US.
NHS dentistry continues to be a growth environment, with significant demand not currently being met. Since the new NHS dentistry contract came into effect in early 2006, Oasis has won a market leading number of new practice contracts tendered by Primary Care Trusts (PCTs). Trusts are increasingly demanding higher clinical and organisational standards and Oasis is also winning many additional hours of NHS work across its estate as well as improving efficiency and patient care.
At the same time both newly graduated and experienced dentists are more and more drawn to work in larger professional organisations. As a leading corporate dentistry chain, Oasis is in a strong position to benefit from this trend.
In addition a wide range organic operational improvement opportunities exist.
Industry consolidation
With only 7% share between all corporate players there is a unique opportunity for rapid market consolidation at attractive multiples. Oasis plans to be an active participant in that consolidation through smaller acquisitions and transformational deals where appropriate.