Shropshire-based Practice Plan Group, which helps dental practices go private, has been bought out by its management.
The deal, for an undisclosed sum, has been backed by Dunedin Capital Partners, the UK mid-market private equity house.
It said the financial consideration was in its target range of £10-£50 million.
The group provided equity finance alongside a senior debt facility from HSBC's Manchester Leveraged Finance and Corporate Banking teams.
The MBO is Dunedin's first investment since it announced earlier this month that it was in exclusive discussions to acquire Sand Aire Private Equity.
Practice Plan, which has a turnover figure of £5 million, is involved in the creation and facilitation of healthcare maintenance schemes for healthcare professionals.
These are principally aimed at the dental sector - 90 per cent of turnover - but are also targeted at vets and opticians. Practice Plan assists NHS dentists in their conversion to the private sector by providing advice and financial payment plans for patients.
Steve Turnock, previously finance director, has been appointed managing director. He led the buyout supported by operations director Graham Penfold.
Mr Turnock has previous experience of successfully exiting a private equity backed business, having sold the health club group Trainstation, which he co-founded, to Crown Sports in July 2001.
The management buyout allows the founder shareholders John and Jan Tinsley to exit from the company. Both will remain involved in the business on a consultancy basis for a period of time.
Duncan Macrae and Shaun Middleton of Dunedin led, structured and completed the transaction. Mr Macrae will join the company as a nonexecutive director.
Mr Turnock said: "The MBO will allow us to build on our position in a growing market. We have attained our current standing by resolutely focusing on the highest level of service provision, working closely with customers to deliver tailored packages to meet their specific needs.
"The business is at an exciting stage of growth and with Dunedin's support we look forward to developing Practice Plan further."
Mr Macrae, investment director of Dunedin, added: "This is an excellent opportunity to back a strong management team who are well positioned to take advantage of a growing market with a product that is attractive to that market. "
Dunedin was introduced to the MBO by Grant Thornton. Grant Thornton provided financial advice to the management team whilst Brabners Chaffe Street provided legal advice. Dunedin was advised by Hammonds, the founder shareholders were advised by Weightmans, CLB Coopers provided financial due diligence and MBD the market diligence.
