DSO Deal Roundup – April 2024

As you will see below, there are substantial developments unfolding within the consolidation sector this month. Group Dentistry Now (GDN) is the only resource providing a complete list of monthly deals in one convenient place, keeping you informed on the ever-shifting dental landscape.  Subscribe today so you don’t miss this valuable article each month!

Here is GDN’s exclusive list of DSO and emerging group deals for April:

TUSK Practice Sales advised:

• Pediatric Dental Center of Avon in its partnership with Archway Dental Partners. The transaction was led by Yazen Abusad, Associate of M&A. Alex Cherniavsky and Sam Lupton spearheaded the diligence and analytics efforts for TUSK. Under the leadership of Dr. Jeanmarie Cosgrove, Pediatric Dental Center of Avon has served the Avon and Farmington Valley communities in Connecticut since 2009.
• Dynamic Growth Dental in its affiliation with Dental365. The transaction was led by Josh Swearingen, Director of Mergers & Acquisitions at TUSK Practice Sales. Alex Cherniavsky and Sam Lupton spearheaded the diligence and analytics efforts for TUSK. Since its founding in 2018, Dynamic Growth Dental has scaled to a 9-location DSO. Dynamic Growth Dental has provided dental care to widespread communities in Pennsylvania. Dr. Ryan Jones is the Co-Founder and CEO of Dynamic Growth Dental.

Walmart announced it will close all 51 Walmart Health centers across five states and Walmart Health Virtual Care. They determined, “there is not a sustainable business model for us to continue.” Walmart said it could not operate a profitable business due to a challenging reimbursement environment and rising costs. This is stunning reversal of their plans to double their footprint, which they announced just a year ago, and its announcement on April 10, 2024, that it had just opened four of the 18 planned new Texas locations.  The megastore opened its first Walmart Health location in 2019 in Dallas, Georgia. The big-box retailer said it would also shutter its telehealth provider, which it acquired for an undisclosed amount in 2021. Walmart’s 4,600 Pharmacies and more than 3,000 Vision Centers will remain open. With fiscal year 2024 revenue of $648 billion, Walmart employs approximately 2.1 million associates worldwide.

The Smilist Management closed a $285 million unitranche debt facility. Fidelity Direct Lending acted as Administrative Agent on the transaction and Manulife Investment Management served as Joint Lead Arranger. The Smilist has completed 30 affiliations in the last two years. The facility includes commitments for almost $100 million of new growth capital, which will be used to fund strategic acquisitions for The Smilist and drive continued business development initiatives. The Smilist was founded in 2014 and now supports over 60 locations with over 1,200 employees in New York, New Jersey, Connecticut, Delaware and Pennsylvania.

beBright welcomed Metropolitan Pediatric Dental Associates which is located in Saint Paul, MN. The DSO is headquartered in Minnetonka, MN. The DSO has four locations in MN, one in Montana, three in Nebraska, and three in Tennessee. Learn more about beBright here.

Qualitas Dental Partners announced its expansion into central Rhode Island as well as Boston, MA. The four RI practices joining Qualitas represent a diverse range of dental specialties and services, including general dentistry, oral surgery, orthodontics, and endodontics. The Boston location is an oral surgery group. Qualitas Dental Partners is a doctor-owned dental partnership based in southern New England.

Affordable Care’s Affordable Dentures & Implants network opened four new locations:

• Affordable Dentures & Implants – Ross Township, PA
• Affordable Dentures & Implants – Benton Harbor, MI
• Affordable Dentures & Implants – Allen Park, MI
• Affordable Dentures & Implants – Robinson Township, PA

Lone Peak Dental Group, a pediatric DSO, announced the addition of Eastpoint Pediatric Dental Associates. This strategic acquisition marks a significant milestone in Lone Peak’s expansion within the Maryland market, further solidifying its commitment to providing exceptional pediatric dental care to communities across the United States. Dr. Warren Brill is the owner of Eastpoint and former President of the American Academy of Pediatric Dentistry (AAPD) from 2013 to 2014. In 2021, Lone Peak made its initial foray into the Maryland market by acquiring three dental offices. Founded in 2003, Lone Peak Dental Group has rapidly grown to become one of the largest pediatric specialty DSOs in the country, boasting 75 offices across 14 states.

Espire Dental, a multi-specialty group practice founded by dentists, announced their partnership and acquisition of Gregory S. Hulings, DDS, practice located in Frisco, TX. Founded in 2018 and headquartered in Denver, Colorado, Espire Dental considers itself an Integrated Dental Organization (IDO) instead of a DSO. Their 29 practices are located throughout Colorado, California, Oklahoma, Wyoming, and now Texas.

MB2 Dental introduced 11 practices and welcomed 14 doctor partners across 10 states, bringing its 2024 total new practice count to 52. The company also entered its 41^st state, Vermont.

• Brocks Gap Dental Group in Hoover, AL, Acquisition
• Montshire Endodontics in Lebanon, NH & Barre, VT, Acquisition
• Progressive Periodontics in Tidard, OR, Acquisition
• Ferguson Dental Associates in Montclair, NJ, Acquisition
• Summit Dental Group in Boise, ID, Acquisition
• Modern Dental of Kernersville in Kernersville, NC, Acquisition
• Carpenter Dental Group in Mt. Vernon, OH, Acquisition
• Manhattan Beach Endodontics in Manhattan Beach, CA, Acquisition
• Ironwood Dental Care – Cooley Station in Gilbert, AZ, De Novo
• NY Implant Dentistry in New York, NY, Acquisition

Heartland Dental, which added 100+ locations in 2023, grew its network of supported practices in four states, welcoming:

• Costal Cosmetic Dental Associated in SC
• James A. Crouch, D.D.S in LA
• Wexford Dental Arts in PA
• Sunshine Dental of Gulf Breeze in FL.

Additionally, the company collaborated to open nine de novo offices in ID, FL, GA, NC, and UT. This supported dental office marks Heartland Dental’s first supported office in Utah, expanding their supported network to 39 states and the District of Columbia.

Building on the success of 2023, Heartland Dental aims to assist supported practices in expanding oral care access further by opening at least 90 de novos in 2024. Further, Heartland is expanding its affiliation program, targeting 60-80 of the nation’s leading practices. As in prior years, these practices will have 10-12 operatories each, placed in the heart of their communities near local supermarkets, banks, and other healthcare facilities.

New in 2024 will be the company’s first expansions into Utah, expanding its supported network to 39 states, with new de novos in the Salt Lake City market.  As has been the case for over 25 years, Heartland Dental’s twin development programs continue to be a core pillar of the company’s growth strategy.

Dental365 announced the acquisition of:

• Jeffrey C. Sklarin and Dr. Seymour Koslowsky, DDS in Westfield, New Jersey
• Dr. Cirocco, Cirocco Dental Center in Center Valley, PA
• Dynamic Dental Growth of Ephrata, PA and their nine locations

MODIS Dental Partners announced the addition of Pensacola Periodontics and Implant Dentistry. It is led by Dr. Williams, a third-generation Pensacola native with a career in both the dental field and the military. MODIS stands for MODern Implantology and Specialty: MOD – I – S.  They have partnered with Dr. Michael A. Pikos and the Pikos Institute, a dental education center. Learn more about MODIS here.

Headquartered in southeastern Michigan, Seva Dental Team welcomed:

• Dr. Bruce J. Kloster, Toledo OH
• Dr. Lloyd Alpert, Decant Care of Waterford, Waterford, MI

Sage Dental opened two new de novo Florida practices: South Tampa and Viera (Melbourne), bringing the organization to over 120 practices throughout Florida and Georgia. The opening of the South Tampa office marks Sage Dental’s fifth location in the area, while the new Viera location is the company’s 10th practice in the Space Coast region. Sage Dental has grown exponentially since its inception over 25 years ago, doubling its total portfolio in 2023. Sage Dental also recently announced the acquisition of Children’s Dentistry in Tampa, Florida, marking the first Sage Dental Kids location dedicated specifically to pediatrics and orthodontics.

Endodontic Practice Partners (EPP), a Nashville-based specialty partnership organization, announced:

• New partnership with Dr. Gayle Obermayr and Dr. Terryl Petropoulos, Heartland Endodontics, Seabring, Florida
• Securing of an upsized senior debt facility from its existing lending partner, bolstering EPP’s financial position to accelerate its expansion plans. The transaction raised an additional $20 million of committed senior debt financing to continue the growth trajectory of EPP. Affiliating with its first practice in 2020, Endodontic Practice Partners has grown to 71 locations and over 100 doctors. This financing will be used exclusively to pursue new affiliations with endodontic practices, drive market penetration, and fund key business initiatives to enhance EPP’s service offerings to existing partners.

Chicago-based dental startup Dentologie announced it is planning to expand to new Capitol Hill location in Seattle, Washington State. The Chicago-based dental services startup backed and fronted by former Redbox CEO Gregg Kaplan, is making Seattle its first expansion market beyond the Windy City with plans for a new office amid the restaurants and shops of Capitol Hill’s very walkable Melrose Ave. They have been penetrating the urban market in Chicago with ten offices, but they are expanding. As their target clientele, Millennial, are making the transition from city to suburbs, the group is doing the same. For Dentologie’s plans for growth beyond its home city, the Melrose (Capital Hill) office could be the first of many more. Its opening is planned for this summer.

BUPA’s Brunswick Holistic Dental Centre (BHDC) closed their doors permanently. The Australian clinic had operated continually in the same building for over 50 years. BUPA management claim that the recent performance of BHDC and its location within the network are the reasons to not renew the lease and to close down the practice. BHDC is within the Brisbane BUPA territory but is their furthest dental practice from Brisbane and their only one in NSW. There were no attempts to sell the practice prior to breaking news to the staff. There is an Australia-wide shortage of dentists. BUPA struggled to attract dentists, oral health therapists as well as support staff to BHDC. The last two dentists employed at BHDC were overseas graduates on visa sponsorships.

Spark Dental Management rebranded as Chord Specialty Dental Partners. Their new identity aligns their four notes of service — Pediatric Dentistry, Orthodontics, Ambulatory Surgery Centers, and Oral Surgery — as “one harmonious chord supporting our patients’ oral health journeys”. Chord Specialty Dental Partners supports more than 60 specialty oral health practices spanning six states, with an acute focus on pediatric dentistry, orthodontics, oral surgery, and ambulatory surgery centers.

Dr. Michael Scrydloff of Smile Art Dentistry has affiliated with Silver Creek Dental Partners. Silver Creek was founded in 2020 in Dana Point, CA.

Fort Bend Dental announced its recent acquisition and rebranding of Aliana Family Dental to Fort Bend Dental Aliana. Fort Bend Dental also has locations in Missouri City, TX, Richmond, TX, Rosenberg, TX, and Sugar Land, TX.

Pacific Dental Services announced its transformation to “PDS Health,” signifying its evolution into a comprehensive healthcare support organization. This change reflects the company’s growth from its origins in dental support to becoming a leader in healthcare innovation, aiming to revolutionize patient care through the integration of dental and medical services.

For three decades, Pacific Dental Services has been at the forefront of the oral healthcare industry, dedicated to enhancing patient outcomes in communities across the country through clinical excellence and proven technology. Scientific evidence clearly shows that oral health directly impacts overall health, and vice versa, prompting the organization to extend its focus beyond comprehensive dentistry. Led by Founder and CEO Stephen E. Thorne IV, PDS has long pioneered the inclusion of dental specialty areas such as oral surgery, endodontics, periodontics, pediatric dentistry, and orthodontics into general dentistry practices, and has recently expanded into primary medical care.

Accompanying its transformation, PDS Health has unveiled its new headquarters located at 3521 Volunteer Boulevard in Henderson, Nev. The 36,000-square-foot building includes executive office spaces, meeting rooms and expansion areas for future initiatives. The building will also house the future Thorne Center for Excellence, a leadership academy established to help build the next generation of clinical and non-clinical leaders for the company. PDS Health continues to operate support centers in Irvine, Calif., Henderson, Nev., and Dallas, Texas, and plans to open an additional support center in Miami later this year, further expanding its national presence.

Straine Dental Management (SDM), an Emerging Group to Watch in 2024, continues its national expansion with a strategic affiliation with Jolly Family Dental – North Little Rock, Arkansas. This marks SDM’s entry into its 13th state. Jolly Family Dental is led by Dr. Brad Jolly and Dr. Scott Jolly.

FlossTime, a provider of on-site dental services for companies, founded by Dr. Maged el-Malecki, is now eyeing expansion into New York with its dental studio service. The company has already gained considerable traction for its on-site dental studio model in Boston and Massachusetts. The expansion of FlossTime into new markets like New York highlights the increasing demand for accessible dental services in urban centers. By bringing dental care directly to employees, FlossTime is breaking down barriers to oral health and promoting preventive care practices.

Elevate Dental Partners expands into Washington with the addition of its newest partner, Washington Family Dentistry and their seven practices. Elevate was founded in 2019 and is headquartered in Denver, CO.  Washington Family Dental’s seven practice locations are:

• Covington Family Dentistry
• Burlington Family Dentistry
• Smokey Point Family Dentistry
• Monroe Family Dentistry
• Cottage Lake Family Dentistry
• Bonney Lake Family Dental Care
• Graham Family Dental Care

UK-based Vitality Dental Care extended its offering with its new Fairfield practice. Riverdale Healthcare is a growing dental group with dental practices located across England, delivering a range of NHS, private, and specialist dental treatments. Led by Group Clinical Director, Neeraj Diddee, the practice offers general dentistry, implants and restorative dentistry.

DSO Deal Roundup is Sponsored by TUSK Practice Sales  

TUSK Practice Sales is proud to partner with the Dykema DSO team to offer a one-day workshop created specifically for companies that are not yet backed by private equity funding, to aid entrepreneurs in scaling and exiting their business at the top. TUSK Practice Sales has worked with hundreds of entrepreneurs to help them understand the true value of their dental practice and will bring that experience to you in Denver. The TUSK Practice Sales M&A Workshop will focus on maximizing the value of your business in a sale, regardless of if you ever sell it.

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