BGH Capital and Canadian pension fund Ontario Teachers’ Pension Plan Board (OTPP) are acquiring New Zealand-listed dental group Abano Healthcare for NZ$150 million ($95.4 million).
Adams NZ Bidco Limited, an entity formed by BGH Capital and OTPP, has offered to acquire 100 per cent shares of Abano at NZ$5.7 apiece, representing an enterprise value of NZ$300 million for the company. Abano on Tuesday announced its board was in favour of the takeover.
“After a thorough assessment of the options, including the divestment of individual businesses or the group under different transaction alternatives, and the status quo, the Abano Board has concluded that Bidco’s Scheme proposal represents the most compelling value for shareholders,” said Pip Dunphy, chairman of Abano.
The transaction, subject to regulatory approvals, will be implemented through a court-approved scheme of arrangement and is expected to be completed by April 2020.
“The transaction accelerates a capital return to shareholders and mitigates the risks that would otherwise be involved in delivering the opportunities from executing Abano’s strategic plan over time,” Dunphy added.
Abano owns one of the largest dental networks in Australasia, operating Lumino The Dentists in New Zealand and Maven Dental Group in Australia. BGH Capital founder Simon Harle called Abano a “pre-eminent dental business” in the region.
“We are confident that with our continued investment in the business and ongoing support it will further grow and prosper,” he said.
The acquisition marks another bet by the private equity firm in the healthcare sector in the region after its takeover offer was rebuffed by Australian healthcare services provider Healthscope.
BGH Capital, founded in 2017, closed its first fund at A$2.6 billion ($1.75 billion) in May 2018, claiming to be the largest private equity fund focused on Australia and New Zealand. The fund counts Singapore’s Temasek as a limited partner.