Since the company’s successful initial public offering (IPO) late last month, acquisitions have been completed and property leases executed or assigned for 52 dental practices.
This includes the acquisition announced post-listing of the Indooroopilly Dental Centre practice.
April 2018 IPO raised $35 million
Smiles successfully listed on the ASX after raising $35 million in an IPO priced at $1 per share.
Funding from the IPO was for the dental practice roll-up to acquire a portfolio of 52 practices under a unique partnership model.
49 of the 52 dental practice acquisitions in the initial portfolio were completed prior to listing.
120-day integration plan
The Company has a 120-day integration plan for the initial portfolio of dental practices.
It involves completing acquisition and property lease arrangements, implementing operational processes and systems across the network and re-branding practice under the Totally Smiles brand.
51 of the original 52 practice portfolio have been acquired as well as the Indooroopilly practice bringing the total to 52.
The acquisition of the final practice from the initial portfolio is unlikely to proceed because the seller has been unable to obtain a release of encumbrances.
The practice was significantly smaller and less profitable than the Indooroopilly Dental Centre practice.
More than 54% of the acquired practices are operational on the centralised practice management system.
Further potential acquisitions
Discussions are progressing with dental practices seeking to join the Totally Smiles network, and the company is conducting due diligence on a number of prospective acquisitions.
Over May and June 2018, more than 490 dentists and dental practice owners have registered to attend five seminars across Australia explaining the Smiles Inclusive business model.