The deal also sees Oasis enter the attractive dental market in the Republic of Ireland.
The addition of Smiles will increase Oasis’s turnover from £160m to over £210m, through the provision of quality NHS, private and specialist dental care to over 2.5 million patients, as their practice network grows by 37 per cent from 204 to 281.
The UK dental market has expanded during the course of the last decade, reaching an estimated £5.7 billion in 2012. Oasis’s acquisition of Smiles comes at a time when the dental sector is expected to experience further growth over the next five years.
Justin Ash, CEO at Oasis Healthcare Group, said: “This is a transformational deal for Oasis and demonstrates our ability to drive growth and consolidation, building the only national brand in the fragmented dental market.
“We believe this is outstanding news for the 2.5m patients of the combined group and all patients seeking high quality, easy accessible dental care. We are also pleased to be extending our partnership with the NHS across the UK and to be providing care under the HSE in the Republic of Ireland”.
“Smiles is highly complementary to our existing business and shares many of our core values, including a commitment to offering patients real choice, service excellence and transparent pricing. In its recent review the OFT called for improved competition, innovation and price transparency and we are proud to be bringing that to consumers in the UK, and now in the Republic of Ireland”.
“We are very excited about this deal and the prospects for the larger group. We are well funded to continue our growth, and are actively seeking further complementary acquisitions, as well as new openings to at least double the size of Oasis.”
The acquisition of Smiles underlines Oasis’s ambition to be recognised as the go-to brand of dentistry in the UK – putting the patient at the heart of everything it does. In September 2013 Oasis appointed Sir Stuart Rose to chair the board as it creates a truly consumer focused dental chain.
Established in 2005, Smiles provides comprehensive dental care from 77 practices throughout the Republic of Ireland, Northern Ireland, England, Wales and Scotland. Smiles offers a high quality patient focused service that includes clear pricing, extended opening hours, and an excellent level of patient care and after-care.
Emmet O’Neil, CEO at Smiles Dental, said: “We were looking for a partner to help Smiles reach the next level and had examined a number of options. When I met Sir Stuart and Justin Ash I realised that there was a shared approach and a matched ambition at Oasis. I am delighted to be joining their team and look forward to working hard not only to integrate our business, but to grow in future and to continue delivering a modern and innovative approach to dentistry. The team at Smiles both in the UK and Ireland have a huge amount to be proud of, and I want to take this opportunity to thank them for their loyalty, support and dedication.”
The two businesses are already well aligned as they share many synergies, supported by outstanding staff and dentists who are focused on quality clinical care and the patient. Bringing the businesses together provides patients with improved access to a wider range of clinical services and outstanding care across the UK and Ireland.
Oasis will brand the new practices as Oasis Dental Care in the UK, and keep the distinct character of the referral practices in the group. In Ireland Oasis will maintain the strong Smiles brand, which is already well established.
Founded in 1996, Oasis currently operates over 205 dental practices across England, Wales and Northern Ireland, with over 850 are dentists offering exceptional care to over 2m patients. Its practices offer a full range of NHS and private dental care and specialist services.