DSO Deal Roundup August 2022

Dentist practice ownership continues to decline, from 84.7% in 2005 to 73% in 2021, according to the latest data from the ADA Health Policy Institute. While solo practices continue to decrease, groups and dental support organizations continue to increase. According to the ADA, this accelerating shift on practice modality can be attributed to at least three factors:

  1. big exodus of the baby boomer dentist population,
  2. surge of younger dentists in the workforce, and
  3. COVID-19 pandemic.

With consolidation stronger than ever, here is August’s list:

Emerging Group to Watch in 2022 – The Smilist – Expands into Pennsylvania
The Smilist Management, Inc. has welcomed its first partner in the state of Pennsylvania – Dr. Robert Daschbach. Daschbach and Associates has been serving Bucks & Montgomery Counties for more than 35 years. This affiliation represents their initial entry point into the Pennsylvania market. Founded in 2014, The Smilist has rapidly grown, now supporting over 45 offices with nearly 900 employees in New YorkNew Jersey and Pennsylvania.

Dental365 & Premier Care Dental Management Acquire New Jersey DSO
Dental365 & Premier Care Dental Management announced the acquisition of Dental Care New Jersey, a NJ-based DSO with eight general dental practices. The acquisition brings the organization to over 100 supported practices in total. Founded by Dr. Jerome Simon and Brent Simon, the Dental Care New Jersey offices are located in Bridgewater, Hillsborough, Somerset, Basking Ridge, Princeton, Marlboro, Springfield, and Watchung. Premier Care Dental Management offers support services to Dental365, Leading Edge Oral Surgery, and Beacon Dental Health. To date, the company provides support services to practices in five states – MA, RI, NY, CT, and NJ. This acquisition marks a milestone for the New Hyde Park based organization, which has nearly doubled in size each year since its inception in 2014. The organization now provides support to 106 general dental and specialty offices. Hear more from the DSO’s founder and CEO, Dr. Scott Asnis on the GDN podcast.

MB2, a DPO with 400+ Practices in 38 States, Expands through Aquisitions and De Novos:

  • Solomon Orthodontics, Dr. Michael Solomon, Killeen and Salado, TX, two acquisitions
  • Iconic Dental, Dr. James Shoff, Walsenburg, Colorado
  • Magnolia Dental & Orthodontics, Dr. Brad Vermeulen, Magnolia, TX, de novo
  • Prosper Smile Studio, Dr. Adrian Bertulfo, Prosper, TX, de novo
  • Undisclosed practice located in New Hampshire
  • Northern Michigan Pediatric Dentistry, Dr. James Van Wingen, Dr. Matt Mandeville, Dr. Brandon Boike, Traverse City, MI, acquisition
  • Jeff Montgomery DDS, Dr. Jeff Montgomery, Norton and Gate City, VA, two acquisitions
  • Highland Creek Family Dental, Dr. Shane Cope, Lafayette, IL, acquisition
  • Whispering Ridge Family Dentistry, Dr. Laura Foral and Dr. Brian Foral, Omaha, NE, acquisition
  • Lombardi Dental, Dr. Domenic Lombardi, Sharpsville, PA, acquisition

Guardian Dentistry Partners (GDP) Announces New Partnerships
Founded in 2018, Guardian has expanded rapidly and now supports dental entrepreneurs in 11 states: Alabama, Florida, Michigan, New Jersey, New York, North Carolina, Pennsylvania, South Carolina, Texas, Virginia, and now Maryland. The DSO was featured on GDN’s Emerging Groups to Watch list in 2020 and GDN’s Voice of the DSO Industry Podcast. Here are their newest affiliations:

  • Dr. Ed Hull, Charlotte, NC
  • Gordon Dannelly, DMD, Hi-Tech Family Dentistry, Easley, SC
  • Dr. Dennis Norkiewicz from Rockville Dental Arts and Dr. Gary Adams from Maryland Holistic Dentist, Burtonsville, MD
  • Dr. Craig Adams and Dr. William Cheek, Adams & Cheek Dentistry, Raleigh, NC
  • Dr. Leon Banchik and Dr. Olya Banchik, Reafield Dental Family Cosmetic & Implants, Waxhaw, NC
  • Dr. Jim Tatum with Opelika Dental Arts, Opelika, Alabama
  • Dr. Tony Clark, Fort Walton Beach, FL
  • Drs. Julie & Wayne Scott, Coppell, TX
  • Mazin Nakhleh, DDS, Park Central Dental, Dallas, TX
  • Ron Brazda with Coral Springs Dental Center, Coral Springs, FL

TAG – The Aspen Group to Acquire AZPetVet – A Group of 22 Veterinary Hospitals in the Phoenix Area
AZPetVet was founded more than 35 years ago. TAG is one of the largest and fastest growing consumer healthcare support companies in the U.S. TAG has recently applied its Aspen Dental model to three other consumer healthcare brands: ClearChoice Dental Implant CentersWellNow Urgent Care and Chapter Aesthetic Studio. Learn more about how TAG is breaking down barriers through its portfolio of consumer healthcare brands. Shannon Gillis is CEO at AZPetVet and Bob Fontana is Chairman and CEO at TAG.

Smile Doctors Continues Impressive Growth in Q2 2022 Report
Smile Doctors, an ortho-focused dental support organization (OSO), is adding to its list of affiliated practices with the announcement of 20 new clinics added in Q2 2022.  J. Hedrick is the CEO of Smile Doctors. The addition of the 20 locations brings the total number of clinics Smile Doctors represents to 344 and includes 13 new doctors and seven new practices.

  • Associated Orthodontists (Illinois)
  • Charleston Orthodontic Specialists (South Carolina)
  • Legler Orthodontics (Florida)
  • Farina Orthodontic Specialists (Florida)*
  • Rothenberg Orthodontics (New Jersey)
  • Lakes Orthodontics (Minnesota)
  • Copus Orthodontics (Michigan)

* TUSK Partners, which provides M&A advisory services to the dental industry, advised Farina Orthodontic Specialists and its three locations in its affiliation with Smile Doctors. The transaction was led by Kevin Sauer, Director of M&A at TUSK Partners. Alex Cherniavsky and George May spearheaded the diligence and analytics efforts for TUSK.

Canada’s Largest DSO, dentalcorp, Reports Second Quarter 2022 Results:

  • Revenue of $327.0 million for the second quarter 2022, an increase of 25.2% compared to the same period in 2021
  • Adjusted EBITDA(1) of $59.8 million for the second quarter 2022, an increase of 22.3% compared to the same period last year; Adjusted EBITDA Margin(1) of 18.3% for the second quarter
  • Adjusted free cash flow(1) of $41.7 million
  • Adjusted net income(1) of $24.2 million; Net Income of $2.4 million, all for the second quarter 2022
  • Same Practice Revenue Growth(1) of 3.1%
  • Acquired $16.1 million in PF Adjusted EBITDA(1) from the acquisition of 28 practices in the second quarter 2022
  • Last 12-months PF Revenue(1) and PF Adjusted EBITDA(1) of $1.3 billion and $245.8 million, respectively;  PF Adjusted EBITDA Margin(1) of 19.3%

(1) Non-IFRS financial measure, non-IFRS ratio or supplementary financial measure. See “Non-IFRS and Other Measures” section of this news release for definitions and quantitative reconciliations.

LCP-backed Signet Leadership buys Dill Family Dentistry
Dill Family Dentistry will join and operate under Ladd Dental Group, Signet’s flagship partner, as the platform’s eighth clinic in Indiana. Dill Family Dentistry is led by Dr. Todd Dill. Signet Leadership is headquartered in Kokomo, Indiana.

U.S. Oral Surgery Management Announces New Firsts:

  • Announces partnership with Oral and Facial Surgeons of Michigan, an oral and maxillofacial practice with four locations in southeast Michigan. This is their first partnership in Michigan. Oral and Facial Surgeons of Michigan has locations in Brighton, Clarkston, Hartland and Waterford. The practice has six doctors.
  • Announces partnership with Erickson Oral & Maxillofacial Surgery of Carol Stream, Illinois. This is the company’s first partner practice in the state of Illinois. Erickson Oral & Maxillofacial Surgery is led by Mark F. Erickson, DDS. Dr. Erickson is actively involved with a number of professional organizations, in particular, the Cleft Lip and Palate—Craniofacial Association.

Great Lakes Dental Partners Continues to Expand in Illinois
GLDP, a Midwestern DSO, affiliates with Signature Dental Group, a dental implant provider, growing its reach in the greater Chicagoland area. Dr. Mohammed Shakeel leads Signature Dental Group. GLDP provides practice management services to 40+ partner locations.

Heartland Dental Opens Six New Locations in Two Weeks. 
Founded by Rick Workman, DMD, with a single dental practice, the DSO has evolved into supporting over 2,400 dentists in over 1,600 dental offices across 38 states.  Their six newest locations are Dental Care at Monument Ridge, Severna Park Dental Care, Sea Haven Dental Care, Dental Care of Riverbend, West Beacher Dental Care, and Dental Care of Raymore.

Portman and Dentex Merger
Portman Dental Care and Dentex have entered into a definitive transaction agreement regarding the merger of their businesses. Completion is subject to customary regulatory approvals. With equity funding from Core Equity Holdings the combined entity will join together to form the largest privately focused dental group in the UK and one of Europe’s largest dental care platforms.  In combination they will operate in 350+ practices, with 2,000+ clinicians and 4000+ employees and provide dental care for 1.5+ million patients per year with operations currently in five European countries and plans to further expand this in the near future. Dentex recently partnered with James Goolnik of Bow Lane Dental Group, which is based in central London, and Dr. Deena Savjani of Clearly Orthodontics, which is based in Leicester, England. Portman recently acquired Sharoe Green Dental Practice in Lancashire.

2022 ‘Emerging Dental Groups to Watch’ Winner – PepperPoint Partnerships – Expands into New York Market
PepperPointe Partnerships, which is based in Lexington, Kentucky, is expanding into New York with the addition of eight orthodontic and pediatric dental practices, 10 doctor partners, and 20 office locations. Expansion into this region represents a 22% increase in individual office locations supported by this doctor-owned dental service organization. This marks the first group of practices supported by PepperPointe outside the state of Kentucky. The DSO recently made the Inc. 5000 list of America’s fastest-growing private companies – ranked No. 3072 (2022) with 175% three-year growth. President and CEO, Greg White, DMD, MS, discussed his DSO on the GDN podcast.

Bond Orthodontic Partners – Launched in May of 2022 – Continues Platform Expansion with New Partnerships:

  • Stormberg Orthodontics, an orthodontic practice in San Diego County, serves patients from East County and surrounding communities. Dr. Stormberg is a Diplomate of the American Board of Orthodontists.
  • Berro Orthodontics, an orthodontic practice serves patients in Long Beach, Los Alamitos, Seal Beach, Lakewood, Chino Hills and the surrounding communities. Berro Orthodontics, led by Dr. Samuel S. Berro.
  • Curtis Orthodontics and Post Falls Orthodontics serve patients in Coeur d’Alene and Post Falls, Idaho. Dr. Erik Curtis leads both Curtis Orthodontics and Post Falls Orthodontics.

Emerging Group to Watch in 2022 – Imagen Dental Partners – Expands:

Meadow Place Dental Joins in new Partnership with Smile Brands
Dr. Lawrence Life and Dr. Jennifer Walsh, along with associate Dr. David Cardaropoli, lead a team of 16 from their East Longmeadow, MA location. Smile Brands, based in Irvine, California, is led by Steve Bilt. The company supports nearly 700 affiliated practices, with more than 7,500 team members across 30 states. Smile Brands supports a portfolio of over 75 brands including regional brands: Bright Now! Dental, Castle Dental, Merit Dental, Midwest Dental, Monarch Dental, and Mondovi Dental.

Independent Dental Group Acquires Rival Business in Major Deal
Birmingham-based independent dental group, Riverdale Healthcare, has acquired dental firm, Hanji Dental Group, for an undisclosed sum. The deal, which comes amid growing M&A activity in the UK’s highly fragmented dental industry, brings 18 practices to Riverdale’s group, taking its total number of dental practices to 59, along with a dental laboratory. The acquisition is among the largest in the UK’s dental sector in recent years, with M&A increasing during 2021 and 2022 as investors, private equity firms and other buyers seek to enter the growing market. Hanji Dental Group is also based in Birmingham. The business was founded in 2007 by Dr Kiran Hanji.

Sentinel Exits Altima Dental via Merger with 123Dentist
In 2019, Altima merged with Quebec-based Lapointe Group, creating a leading DSO with offices in six provinces across Canada. In July 2022, Altima Dental and 123Dentist announced the plan to merge all three entities to create one of the largest DSOs in Canada with a network of 350 clinics servicing the entire country with a presence in every major metropolitan market. Sentinel Capital Partners, a private equity firm, just announced the closing of the merger of its portfolio company, Altima Dental, with 123Dentist. The transaction was financed through equity capital provided by 123Dentist’s existing private equity sponsor, Peloton Capital Management, and new investors KKR, a leading global investment firm, and Heartland Dental, a KKR portfolio company and the leading dental support organization in the U.S. Sentinel will retain a minority equity stake in the combined company.  Dr. Amin Shivji is the CEO of 123Dentist. Terms of the deal were not disclosed.

Three New Locations for Affordable Dentures & Implants:

Peak Dental Services Expands into the Greater Houston Region by Supporting 4 Additional Locations, Representing 13 Providers, & Nearly 80 Team Members
The DSO has welcomed Sealy Dental Center in Sealy, Sealy Dental Center in KatySealy Orthodontics, and Sealy Kids Dentistry. This is their sixth region as they span across Colorado Springs, Denver, North Colorado, San Antonio, Austin, and Houston.  The DSO has over 50 locations throughout Colorado and Texas, recently announced a new ownership package for all the organizations’ hygienists, honoring the importance of their hygiene team. Peak Dental Services was founded in 2008 by a dentist, Dr. Douglas Peak, and his son A.J. Peak. The DSO made the Inc. 5000 list for four years.

Dental Care Ireland Adds Three More Practices in Dublin
Co-founded by Colm Davitt and Joe Coleman, Dental Care Ireland is a network of 32 local, family-focused dental practices across the country. They recently added Huw, Audrey, Niall, Daryll and all of the teams in Molesworth Street, Churchtown and Dundrum.

Beacon Oral Specialists Welcomes New Partnerships
Beacon Oral Specialists was founded in 2020 in Dallas, Texas and is led by Michael Friguletto, CEO. They support 19 nonbranded oral surgery groups located in CA, VA, GA, DC, TX, MA, WA, and NV. Their affiliated practices include Bay Area OSM, Atlanta Oral & Facial Surgery, Fairfax Oral & Maxillofacial Surgery, and Dental Implants, and Desert Oral Surgery. Their newest addition is
Dr. Junil Ahn and his team at OC Oral Surgery located in Aliso Viejo, CA.

GDN’s DSO Deal Roundup
– Acquisitions, De Novos, Partnerships, Funding, More – Monthly

Please provide any new DSO or dental deals to Group Dentistry Now for consideration. Include a succinct summary of the acquisition, partnership, de novo location(s), funding, sale or more with details. Email to info@groupdentistrynow.com.

GDN may ask for more information, and from time-to-time, may feature a story which could include an interview, etc. GDN reserves the right to refuse publication of any deal for any reason.

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