Dental Corporation Holdings Limited has announced a strategic partnership with Singapore based Fortis Global Healthcare Holdings Pte Ltd. Fortis Global Healthcare will invest A$100 million to acquire a minority interest in Dental Corporation. The funds will be used by Dental Corporation to continue to expand its network of premium dental practices across Australia and New Zealand.
Since partnering with its first practice in October 2007, Dental Corporation has grown to now own and operate 139 dental practices across Australia and New Zealand with annualised revenue in excess of A$250million.
Fortis Global Healthcare Holdings Pte Ltd is owned by Malvinder Mohan Singh and Shivinder Mohan Singh. They also own a majority stake in the Indian-listed Fortis Healthcare Limited, a leading private hospital chain in India. Fortis Global Healthcare is focused on the creation of an international healthcare business and in October 2010 became the largest primary healthcare provider in Hong Kong after announcing its acquisition of Hong Kong-listed Quality Healthcare.
Mr Mark Evans, Executive Chairman and co-founder of Dental Corporation, said "The investment by Fortis is a fantastic outcome for our business and follows an extensive process to introduce the best strategic partner with the vision and financial strength to assist us deliver our long term growth plans.
"The Fortis investment will allow us to continue to expand in Australia and New Zealand and should present opportunities in Asia through the Fortis network."
Dr Ray Khouri, Executive Director and co-founder of Dental Corporation said "It is a tremendous opportunity to partner with an organisation with core values and vision so closely aligned with our own. This will inevitably result in a further enrichment of positive healthcare outcomes to our patients.
"This business alignment will add value to both our existing business operations and the dentists within the Dental Corporation Group through the sharing of intellectual property and a cross pollination of ideas on an international platform."
Mr Malvinder Mohan Singh, Executive Chairman of Fortis Global Healthcare, said: "Dental Corporation is a premier dental care brand in Australia within an industry which is highly fragmented and individualistic. Their model of business partnership with principal dentists is a significant point of differentiation driving the rapid growth of the business and the most effective way to manage high performing professionals.
"We believe that there are tremendous opportunities for expansion in Dental Corporation, both in Australia, New Zealand and beyond, and we will support the management and professionals of Dental Corporation in realising such growth.
"We are delighted to have the opportunity to work together with a specialist healthcare team in furthering our growth beyond India and Asia. The management team and the dental professionals at Dental Corporation have done a tremendous job to build a first class platform, which has delivered consistent growth."
Fortis Global Healthcare will appoint two executives to the Dental Corporation board. All operational functions and management of the Dental Corporation business will remain unchanged. The final transaction structure is subject to FIRB and Dental Corporation shareholder approval.