Denplan

Transaction Background

In May 1991 Graphite Capital purchased the interest of a retiring shareholder of Denplan. Denplan operated an independent scheme for providing dental care under which dentists agreed to maintain the teeth of their patients in return for a set monthly fee.

Deal Attractions

With the NHS reviewing the way dentists were paid, many of them were looking for an alternative route to secure payment and provide a quality service to their patients. Denplan’s product offered an innovative payment scheme benefiting both dentists and patients. Denplan was led by a strong management team, experienced in dealing with dentists.

Achievements

the number of participating dentists increased from 2,750 to 4,900 during our ownership
over the same period the number of patients paying through Denplan increased from 135,500 to approximately 500,000
turnover increased fivefold to £53.3 million while pre-tax profit increased from £0.2 million to £2.7 million

Exit

Denplan was sold to Private Patients Plan (PPP) in November 1993 for £42 million
the sale generated an internal rate of return on our investment of 135 per cent and a multiple of 8.0 times the cost of our investment