Scotland’s largest dental group to swallow more practices with £25 million war chest

Scotland’s largest dental group is to sink its teeth into further acquisitions after securing a £25 million war chest.

Clyde Munro Dental Group will embark on a period of further growth through acquisition, thanks to the additional funding package from banking and wealth management firm Investec.

Since it was created in 2015 by founder Jim Hall, the group has grown from seven practices to 54 across Scotland, with more than 200 dentists, 400 staff and some 460,000 patients.

Hall said: “Investec has bought into our vision from the outset. This new cash injection affirms that ourselves, our shareholders and our bank have a huge commitment to, and belief in, the Scottish dental sector.

Jim Hall, chief executive of Clyde Munro, with Stephen White, head of origination, growth capital at Investec.

“It also gives us the firepower required to continue our amazing growth and deliver further on our clearly-stated ambition of becoming Scotland’s local dentist.”

The funding package with its biggest backer also includes an “ESG (environmental, social and governance) ratchet” which will reduce interest repayments on the funding as Clyde Munro achieves its sustainability performance targets.

Stephen White, head of origination, growth capital at Investec, said: “This funding is not only an investment in Clyde Munro, but a major boost for Scotland’s dental sector.

“We are particularly delighted with this transaction as the ESG ratchet supports our commitment to sustainable finance and are in no doubt that Clyde Munro will act as an exemplar for other firms to follow suit in practicing sustainable business.

“Clyde Munro is a business with a clear vision and we are incredibly proud to further support it as it continues to invest in its dentists, patients and individual practices.”

Investec’s backing has been seen as vital to the growth at Glasgow-headquartered Clyde Munro, which has practices spanning locations from Orkney to the Borders. It takes the total committed by the funder to £55m.

It is also only the second time the bank has deployed its ESG-related margin ratchet. Targets are based on Clyde Munro’s ambitious ESG strategy, covering aspects such as recycling.

Hall added: “Our ESG strategy differentiates us and forms a core part of our business. The ESG margin ratchet will propel us to becoming net zero by 2030.”

The firm has also renewed its call for principal dentists looking either for an exit or for a chance to ease the administrative burden of running a business to get in touch.

That has proved a successful strategy to date, with the group enjoying rapid growth through acquisition.

Last month, the company announced that it had acquired Alloway Place Dental Practice in Ayr, which was founded in the 1950s and bought by husband-and-wife team James and Jennifer McCall in 2013.

The predominantly NHS practice has a team of 20, and serves almost 10,000 patients, “many of whom are the third and even fourth generation to use its services”.

Jennifer McCall said: “Running a practice is greatly challenging as the amount of regulation has grown, even prior to the pandemic.

“It’s clear to us that Clyde Munro will give us that centralised support to free us up to put our time and energy fully into treating our patients.”

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