AN acquisitive Glasgow-based dental group has won multi-million pound backing for expansion amid keen investor interest in the sector.
The Scottish Dental Care Group secured the funding from BGF after building up a 15-strong portfolio which includes clinics across the central belt, Dumfries and Galloway, the Highlands and the Grampian region.
The business, which is led by brothers Christopher and Philip Friel, said it would use the funding to help it acquire clinics and teams of talented staff in communities across Scotland.
BGF said it was delighted to support the group, which it reckons has a clear growth strategy that will allow it to capitalise on favourable market conditions.
READ MORE: BGF eyes 'exciting' deals in Scotland after surge in activity
The group provides general dentistry services and other such as teeth whitening and facial aesthetics.
While demand trends are favourable the sector is highly fragmented, with lots of independent operators. This creates opportunities for consolidators to use acquisitions to help them gain market share and to achieve related economies of scale.
Other dental businesses have won backing for acquisitions.
Earlier this month Clyde Munro won a further £25m support from Investec, taking the total provided by the investment bank and wealth manager to £55m. It has also won investment from the Synova Capital private equity business.
Clyde Munro has used acquisitions to help it built up a 54-strong portfolio in Scotland within seven years.
READ MORE: Fife-based dental group backed by London private equity investor
Philip Friel has been a practicing dentist for more than 20 years. Christopher Friel was a successful corporate lawyer before joining Scottish Dental Care Group as managing director.
Last month BGF said it had put close to £60 million into the growth economy in Scotland last year through its investment in firms based in the country.
It was formed as the Business Growth Fund in 2010 with backing from six banking groups, including Royal Bank of Scotland and Lloyds.
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