Dunedin Enterprise exits Practice Plan

RNS Number : 6699L

Dunedin Enterprise Inv Trust PLC

14 August 2013

 

Dunedin Enterprise Investment Trust PLC ("Dunedin Enterprise") has exited from its investment in Practice Plan, a leading UK provider of membership plans and other support services to dental practices.  The sale to Wesleyan Assurance Society is subject to regulatory approval at which point the transaction will complete. On completion the investment in Practice Plan will have achieved a realised multiple on equity of 2.7x the amount invested by the Trust. This represents the third portfolio exit for Dunedin Enterprise this year, following the sale of its investment in FSN Capital in May 2013 and in Egeria in February 2013.

Capital and accrued interest in Practice Plan were valued at £12.6m as at 31 March 2013, the last published valuation. Total proceeds from the investment on completion will amount to £14.8m, consisting of capital of £8.9m and income of £5.9m.

The cost of the investment at 31 March 2013 was £5.6m. The capital gain on realisation of the investment amounts to £3.3m, at least 50% of which (£1.6m) will be returned to shareholders in due course.

Dunedin, the manager of Dunedin Enterprise, backed the MBO of Practice Plan in September 2005. In October 2011 Practice Plan acquired Isoplan, a UK dental plan provider, and Medenta, the market leader in dental patient finance.

Shaun Middleton, Managing Partner of Dunedin, said: "The investment in Practice Plan has produced a strong return for Dunedin Enterprise shareholders. The business, with Dunedin's backing, has performed very well, successfully integrating two acquisitions and embarking on an internationalisation strategy. "

 

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