Morphosis Capital invests in Dr. Leahu Dental Clinics

Morphosis Capital Fund I, a private equity fund focused on Romanian SMEs, announces the closing of an investment in Dr Leahu Dental Clinics, the most extensive network of dental clinics in Romania. The capital infusion provided by Morphosis Capital will accelerate the expansion of Dr Leahu Dental Clinics across Romania. Together, the two entities plan to open 20 new medical units in the next 5 years.

The health crisis has profoundly affected the medical system, including the dental industry. At the same time, it has highlighted the importance of providing the highest standards in terms of medical safety, which remained a priority for us, also during the state of emergency when we were the only dental clinics network open in six counties. We want every Romanian to have quick access to quality dental services, in a safe environment and in the vicinity of their home. We are excited to work to achieve this goal, starting today, together with our partners from Morphosis Capital,” said Ionuț Leahu, CEO and founder of Dr. Leahu Dental Clinics. He added: “we keep an open invitation to independent dental clinics across the country to join our network”.

Founded in 2011 by Dr. Ionuț Leahu, a specialist in dental implantology, Dr. Leahu Dental Clinics is the largest chain of dental clinics in Romania by geographical footprint. The network has 96 medical offices, available in 13 clinics located in Bucharest, Pitesti, Timisoara, Turda, Constanta, Oradea and Iasi as well as one clinic located abroad, in London. Each of the clinics operates multiple chairs and integrates at least one digital dental radiology center. At Dr Leahu Dental Clinics, patients have access to 111 highly qualified medical doctors and five general anesthesia specialists.

Dr Leahu Dental Clinics are the fastest-growing large player on the Romanian dentistry market, setting standards and expectations for the whole industry. At Morphosis, we were impressed about the position that Dr Ionuț Leahu and his highly skilled team have managed to build in the past ten years, and we are excited about the next steps that we are going to take together. Our shared ambition is to provide all Romanians access to dental services at international standards, where patient’s health and comfort are a priority and the experience of the doctors and the access to the latest technology are guaranteed. We want that by the end of 2025, every important city in Romania will have access to the expertise of doctors trained in Dr Leahu Dental Clinics” said Andrei Gemeneanu, Managing Partner at Morphosis Capital.

Following the closing of the transaction, Morphosis Capital holds a minority stake in Dr Leahu Dental Clinics. Together, the two entities plan to consolidate the position of the leader of Dr Leahu network on the Romanian market, through opening new clinics as well as by partnering with already existing dental clinics that share the same vision for the future of dentistry. Moreover, part of the capital infusion from Morphosis Capital will be deployed in developing a medical training center and the residency program.

In 2019, Dr Leahu Dental Clinics recorded a turnover of over 50 million lei, a 69% increase compared to 2018 result. Investment in Dr Leahu Dental Clinics marks the third transaction for Morphosis Capital, which invests between five and ten million euro per transaction in high-growth Romanian SMEs with international expansion potential. The transaction was facilitated by PwC and law firm David & Baias, advising Dr Leahu Dental Clinics and Mihaela Mindru Law Office, advising Morphosis Capital. Mazars Romania provided financial and tax due diligence.


About Dr. Leahu Dental Clinics

Dr. Leahu Dental Clinics Network is the most extensive network in the field of dentistry, with clinics in seven cities in Romania (Bucharest, Pitesti, Timisoara, Turda, Constanta, Oradea and Iasi) and one clinic in London. The chain includes 96 offices, operating on a space of over 5000 square meters and with a team of more than 350 employees, of which 118 doctors and five specialists in general anesthesia. Each clinic integrates at least one digital dental radiology centre, and 7 of the clinics are ATI approved, the network also having its training centre – Dr Leahu Training Centre.

In October 2020, Dr Leahu Dental Clinics launched Yummy Galaxy, the only game in the world that offers rewards in the real world – free consultations and dental prevention products for children. The game expands the story universe of the Dr Leahu Space Academy, the first specialized clinic for children, with gamification system. The concept, based on digital experience and which combines fun and dental health, was designed especially for children, and can be found in all Dr Dental Clinics Leahu in the country. The game is available for free on the Apple AppStore and Google Play.

The Dr Leahu Dental Clinics Network is the first entity in the healthcare industry with financial instruments traded on the alternative system of the Bucharest Stock Exchange.

About Morphosis Capital

Morphosis Capital is a private equity fund with 50 million euro committed capital. Established in December 2018 by four Romanian entrepreneurs, Simona Gemeneanu, Gabriela Dumitru, Dragos Petre, and Andrei Gemeneanu, the Fund aims to contribute to the development and transformation of the Romanian SMEs. The European Investment Fund (EIF), the leading financing platform for European SMEs, co-financed through the Regional Operational Programme, is the anchor investor in Morphosis Capital, while the founders themselves are the co-investors in the fund. Morphosis Capital invests between five to ten million euro in high growth Romanian companies from sectors such as FMCG, niche healthcare, technology, and B2B services, which have a strong potential for international expansion and an EBITDA of a minimum half a million euro. Morphosis Capital portfolio includes DocProcess, Medima Health and Dr Leahu Dental Clinics.