Southern Cross Dental Laboratories ("SCDL")
| Sector | Healthcare |
|---|---|
| Industry | Dental products and supplies |
| Location | Australia |
| Investment Date | June 2012 |
| Original Deal Size | A$96m |
Company Description
Southern Cross Dental Laboratories (“SCDL”) provides a variety of products and services to dentists, small laboratories, and dental schools in Australia, NZ, Ireland, and the UK. These products and services include:
- High quality fixed and removable dental prosthetics such as crowns, bridges, dentures, and implants custom manufactured by labs in China and the USA;
- The exclusive supply of Invisalign in Australia to dentists that have completed the accreditation course run by SCDL. Invisalign is a near-invisible orthodontic system that acts as an alternative to traditional braces; and
- Provision of education services and other associated products and services.
Investment Rationale
Major attractions of the opportunity were:
- SCDL holds a market leading position and is the lowest cost provider;
- Low propensity of dentists to switch once satisfied with product;
- Growth driven by increased market penetration due to pricing and quality;
- Further growth in new markets where initial footprint exists (NZ, Ireland, US);
- Backing an experienced founder and CEO who retains a significant stake in the business;
- Low reliance on Government funding and Private Health Insurance; and
- Many other attractive growth opportunities from systems improvements, product innovation, entering other overseas markets and acquisitions.
Ironbridge Value Added
Chris Aughton became the Chief Operating Officer of Southern Cross Dental in December 2012. Chris was heavily involved in the original investment in this business.
