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Dental clinic operator Pacific Smiles Group (ASX: PSQ) has appointed seasoned childcare centre executive Gary Carroll as its new CEO to replace Andrew Vidler, who resigned from the position last month less than eight months into the role.
Carroll, who led Gold Coast-based childcare group G8 Education (ASX: GEM) between 2017 and 2022, steps in as CEO of Pacific Smiles today from his most recent role as CEO of MindChamps Australia, which operates 21 premium early learning and preschool services across NSW and Victoria.
The search for a new CEO was triggered last month by the resignation of Vidler on 6 September, which came a week after chief financial officer Matthew Cordingley also handed in his notice.
The senior executive exodus followed a failed $327 million takeover attempt from National Dental Care (NDC) of Pacific Smiles in August after the bid was voted down by major shareholder Genesis Capital which controls 19.9 per cent of the company.
Pacific Smiles is currently subject to a new takeover offer, valued at $303 million, from Genesis Capital founders Dr Michael Caristo and Chris Yoo.
However, the Pacific Smiles board has rejected this latest bid which it describes as highly conditional and significantly lower than the NDC scheme that was scuttered by Genesis.
Pacific Smiles has put a positive spin on Carroll’s appointment, downplaying the challenges he faces in dealing with the ongoing battle for control of the company which has been raging for almost a year.
“Following a comprehensive search process, the board is delighted to appoint Gary as managing director and CEO of Pacific Smiles,” says chairman Giselle Collins.
“He has a track record of bringing strategic discipline and accountability to consumer-facing network businesses such as Pacific Smiles, whilst achieving efficiencies from scale and driving growth.
“His experience will be invaluable as we work to deliver on the next stage of network optimisation and growth for Pacific Smiles, and the board is looking forward to working with him to unlock the full potential of the group.”
Pacific Smiles says that Carroll has a “track record growing and transforming consumer-facing distributed network businesses”.
Apart from his role at MindChamps, the company notes that as CEO of G8 Education, which operates more than 400 childcare centres nationally, Carroll led a turnaround for Australia’s largest for-profit childcare group following “a period of significant expansion and financial pressure”. Prior to being appointed CEO of G8, Carroll was CFO after joining the group in 2016.
Carroll has also held senior roles at Super Retail Group (ASX: SUL) including chief financial officer and general manager of group development.
“The opportunity to lead Pacific Smiles is an exciting one and I am pleased to be joining the company,” says Carroll.
“Pacific Smiles is a highly attractive business with a market leading brand, strong invested footprint and capacity for future growth.
“I can see lots of opportunities for the company, and I look forward to working with Giselle, the rest of the board and the broader Pacific Smiles team as we capitalise on Pacific Smiles’ many strengths.”
Carrroll steps in as CEO of Pacific Smiles from today with Vidler agreeing to assist with a smooth transition over the next two weeks until 28 October 2024.
Pacific Smiles’ employment contract with Carroll comprises a base salary of $630,000 plus incentives.
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