Consolidation at the Top Continues as Heartland Dental Announces Strategic Transaction with American Dental Partners Incorporated (ADPI)

M&A activity is at an all time high in the dental industry. COVID-19 has certainly been an accelerant for increased activity coupled with political uncertainty and inflationary pressures. While there is a lot of emerging group and mid-market activity, what has been fascinating is the appetite of large platforms for large strategic acquisitions.

In November of 2020, Aspen Dental Management Inc. (ADMI) announced its acquisition of Clear Choice Management Services. ADMI, who typically has a de novo growth model, added 60 mega locations with the Clear Choice acquisition and strengthened their implant strategy.

A couple of weeks later in December of 2020, Smile Brands completed their acquisition of Midwest Dental, which added 230 additional locations, mostly in the Midwest and Northeast, to increase their location count to over 650 practice locations.

Not to be outdone, Heartland Dental, the nation’s leading dental support organization (DSO), just announced that it has signed an agreement to enter into a strategic transaction with American Dental Partners Inc. (ADPI). Based in Wakefield, Massachusetts, ADPI is a DSO that supports 23 dental group practices spanning 278 locations across 21 states.

The strategic transaction expands the community of doctor leaders within the Heartland Dental community and the ability for such leaders to gain support while providing oral health care to more patients. Through the strategic transaction, Heartland Dental and ADPI will have a combined network of over 2,300 supported dentists, in more than 1,400 locations across 38 states nationwide.

“We are thrilled to bring together two historic industry leaders to further doctor-led, high-quality oral health care. “Heartland and ADPI share a mission to support dentists and their teams in delivering the highest quality patient care and experiences to the communities they serve. Together, we will have expanded geographic reach and operational resources to deliver unparalleled value and support to doctors.” – Patrick Bauer, Heartland Dental President and CEO

Heartland Dental and ADPI are two leading DSOs with complementary missions, cultures, and organizations. ADPI brings an expansive platform of practices, including many that are accredited by the Accreditation Association for Ambulatory Health Care (AAAHC). Heartland Dental is well known for the extensive resources and support it provides to dental practices, including the nation’s best CE and leadership training with state-of-the-art equipment, efficient purchasing methods, and technology.

Notably, upon closing, ADPI doctors and team members will gain immediate access to Heartland Dental’s educational offerings, including CE and leadership training, providing opportunities for supported doctors and team members to enhance skill levels and career advancement.

“We are excited to be joining Heartland Dental’s network, which offers expansive resources to our supported doctors and team members, strengthening their dental practices and enabling the best care to their patients. Our culture compatibility—dedicated to supporting doctors and our team members—is the basis for supporting dental providers as the nation’s leading DSO.” – Kevin Trexler, CEO, ADPI

The transaction is subject to customary closing conditions and is expected to close in the second quarter of 2021. Heartland has entered into a commitment letter (the “Commitment Letter”), dated as of May 12, 2021, with Jefferies Finance LLC, KKR Capital Markets LLC and KKR Corporate Lending LLC (collectively, the “Commitment Parties”), pursuant to which, subject to the terms and conditions set forth therein. Ropes & Gray LLP is acting as legal advisor to Heartland Dental in the transaction. ADPI is being advised by Harris Williams.

More Heartland Dental News:

  • Tru Family Dental Joins Heartland Dental – Read HERE
  • A Deeper Look at KKR’s Investment in Heartland Dental – Read HERE
  • More Heartland News on Group Dentistry Now – Read HERE

More American Dental Partners Inc. News:

  • Group Dentistry Now Show interview with Paul Lamendola , Executive Vice President and Chief Development Officer – Watch / Listen HERE

Sources: PR Newswire, Group Dentistry Now

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