DSO Deal Roundup – May 2024

dso mergers and acquisitions

The dental industry continues to experience economic pressure and staffing shortages. Discussions regarding distressed DSOs, the growth of private group practice, and interest rates continue.

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Here is GDN’s exclusive list of DSO and emerging group M&A for May:

TUSK Practice Sales, the premier healthcare-focused M&A Advisor, advised Scheich Family Dentistry in its affiliation with MB2 Dental, a portfolio company of Charlesbank Capital Partners. The transaction was led by Josh Swearingen, Director, at TUSK. Alex Cherniavsky and Taylor Adams spearheaded the diligence and analytics efforts for TUSK.  TUSK has completed over $1B of transactions across all specialties. Dr. Jeff Scheich and Dr. Stephanie Scheich opened Scheich Family Dentistry in 2003 in Castle Pines, Colorado. Headquartered in Dallas, Texas, MB2 Dental was founded in 2007 as America’s first Dental Partnership Organization (DPO).

Dykema Tusk

Guardian Dentistry Partners, a Miami, FL-based DSO, received an investment from Morgan Stanley Private Credit. The amount of the deal was not disclosed. The company intends to use the funds to accelerate its growth and expand its geographical reach. Led by Danny Kawas, Founder and CEO, GDP was founded in 2018. In 2020 they achieved the prestigious honor of being named an Emerging Group to Watch. The group has expanded rapidly and now supports dental partners in Alabama, D.C., Florida, Maryland, Michigan, New Jersey, New York, North Carolina, Pennsylvania, South Carolina, Texas and Virginia.

MB2 Dental introduced seven practices and welcomed 10 doctor partners across six states, bringing its 2024 total new practice count to 59.

  • Potach & Mitchell Dental Clinic Austin, MN, Acquisition
  • CopperMine Dental Studio in Madera Canyon & Rancho Sahuarita, AZ, Acquisition
  • Cosmetic & Implant Dentistry of La Jolla in La Jolla, CA, Acquisition
  • Lowrey Endodontics in Denver, CO, Acquisition
  • Graig D. Brown Periodontics & Implants DDS, MS in Tucson, AZ, Acquisition
  • Hanna G. Hanania DDS, PC in Dale City, VA, Acquisition

Cliff Ridge Specialty Partners, formerly 49 Mile Ventures, announced the closing of its first acquisition, Angolkar4Smiles, an orthodontic practice with two clinics located in the Greater Seattle Area. Cliff Ridge Specialty Partners is an orthodontic platform. This acquisition represents Cliff Ridge’s entry into the Pacific Northwest market. Cliff Ridge plans to continue expanding into new markets across the Pacific Northwest through partnerships with top-performing orthodontics and pediatric dentists, with the goal of providing doctors with the support, data, tools, resources and capital they need to grow. Cliff Ridge was founded in 2023 and is headquartered in San Francisco.

Smile Partners USA announced the addition of a new practice to its growing network. Located in Decatur, Georgia, the Family Dental Group, led by Dr. MacAndrew “Drew” Robison, is the latest to join their family of dental care providers.

Park Dental Partners announced that it has completed an agreement making Forbes Dental Care, owned by Dr. Michael Forbes, an affiliate of the organization. Forbes Dental Care was founded in 1986 by Dr. Forbes. This affiliation marks the organization’s 205th doctor and 93rd dental practice, respectively. Park Dental Partners currently has affiliated dental practices located throughout the Twin Cities, greater Minnesota and western Wisconsin. Their dental offices include brands such as Park Dental, Apollo Dental, The Dental Specialists and Central Minnesota Endodontics. Park Dental Partners is the largest Minnesota-based provider of business and nonclinical support to general and multi-specialty dental practices and has grown to support over 200 doctors across more than 90 locations over the past 50 years.

Dental365 announced the acquisition of Queensboro Plaza Dental Care in Long Island City, New York. This acquisition increases the Dental365 network to 71 practices in New York.  Dr. Michael Nguyen, who leads the practice, served as a Dental Officer in the United States Navy. Dental365 is a full-service dental group offering general dentistry and specialty services with locations throughout New York, Connecticut, New Jersey, Pennsylvania, New Hampshire, Massachusetts, and Rhode Island.

Dentalcorp, Canada’s largest network of dental practices, welcomed five new practices:

Seva Dental Team announced their newest location, Grandville Family Dental Care, P.C. in Grandville, MI.

Imagen Dental Partners has officially partnered with:

  • Thorp Dental Center in Thorp, Wisconsin. Thorp Dental Center first opened in 1974 and has been under the stewardship of Dr. Jon LaFlamme since 1997.
  • Dream Smile Center in Fort Lauderdale, Florida. Dr. Jeffrey Bartlett leads the practice.

Cal Dental USA expands into orthodontic market with acquisition of LA Dental Braces.  Cal Dental USA is a DSO with a network spanning over two dozen offices across Southern California. The orthodontic market has been experiencing a steady rise globally, driven by factors such as increasing awareness of oral health, rising disposable income, and advancements in orthodontic technology. According to a recent report by Market Research Future, the global orthodontic supplies market is projected to surpass $7 billion by 2027, exhibiting a compound annual growth rate (CAGR) of over 8% during the forecast period.

 ClearChoice Dental Implant Center® opened its doors to new centers in:

  • Chadds Ford, PA. The facility is owned and operated by prosthodontist Felicia Wilson, DDS, MS.  The 7,500 sq. ft. center features eight treatment rooms and employs state-of-the-art features and amenities, including the latest in 3D printing and digital modeling technology aimed at enhancing patient experience and treatment outcomes.
  •  Ann Arbor, MI. The facility, comprising 7,200 square feet and 9 total treatment rooms (3 procedure/surgery rooms, 6 traditional dental operatories), is owned and operated by prosthodontist Abdallah Awada, DDS.

ClearChoice recently celebrated the opening of its 100th location in its network. The currently have 102 centers.

InterDent is a dental service organization with over 150 affiliated dental offices. Gentle Dental, its principal brand, provides general dentistry, orthodontics, periodontics, endodontics, pedodontics, prosthodontics, and oral surgery. Headquartered in Inglewood California and Vancouver Washington, InterDent has practices in 8 western States under the brands Gentle Dental, Smile Keepers Dental, and Dedicated Dental.  Gentle Dental has 45 locations across Oregon and just announced the grand opening of its newest office, Gentle Dental Ashland. Gentle Dental Ashland is led by Dr. Tanya McDonald DDS and Dr. Eric Eltzroth DDS.

Specialized Dental Partners welcomed:

  • Dr. Ann Nicholas, Central Virgina Endodontics, P.C., Charlottesville, VA
  • Dr. Tameika Wheeler Hall, Fayette Endodontics
  • Dr. Anthony Quinta, Life Dental Specialties, Hadley & Springfield, MA
  • Dr. Jonathan Peterson and Dr. Niels Jensen, Mesa Implants & Periodontics, Mesa, AZ
  • Dr. Hudson Johnston, Chandler Implants & Periodontics, Chandler, AZ
  • Dr. Gloria Gargiulo, Gargiulo Periodontics, Chicago, IL
  • Dr. Nima Moaven, Litchfield Endodontics
  • Dr. Sahil Manhas, Jepko Endodontics

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

  • Affordable Dentures & Implants in Centennial, CO
  • Affordable Dentures & Implants in Greensboro, NC
  • Affordable Dentures & Implants in Kearny Mesa, CA
  • Affordable Dentures & Implants in Vista, CA
  • Affordable Dentures & Implants in Cedar Park, TX
  • Affordable Dentures & Implants in Columbia, MO (Rebranded from DDS Dentures + Implant Solutions)

CORDENTAL Group announced their newest affiliation, The Healthy Smile Center in Ashtabula, OH.  Dr. Martin Crombie, Dr. Debra Balogh-Crombie, and Dr. John Hoza led the practice which is located near Lake Erie, approximately 50 miles northeast of Cleveland. This affiliation represents CORDENTAL’s fourth location in Ohio, as well as the 43rd practice in nine states.

Allied OMS, a doctor-led and governed management services organization (MSO) for oral and maxillofacial surgery practices, announced that it has closed on a $116 million credit facility from four banks in the healthcare sector. KeyBanc Capital Markets served as left lead arranger for the syndicate, which includes BankUnited, N.A., Umpqua Bank, and First-Citizens Bank & Trust Company.

The capital commitment is Allied OMS’s first round of outside financing. It will fund the MSO’s next phase of growth, specifically partnering with future OMS practices, building de novos and satellite offices to further support its doctors, and recruiting world-class practitioners into existing practices across the U.S. in keeping with the platform’s high standards of quality and safety and commitment to furthering innovation and advancements in the specialty.

Founded in 2020 in partnership with DuneGlass Capital, a healthcare services-focused independent sponsor, the Allied OMS network now includes 60 doctors serving patients from 39 locations in California, Colorado, Illinois, Louisiana, Maryland, Michigan, New York, Oregon, Tennessee, Texas, and Virginia.

Image Specialty Partners™ welcomed Southern California-Based Hulse Orthodontics. Dr. Cameron Hulse founded Hulse Orthodontics and has been providing orthodontic treatment to the Carlsbad community for over 17 years. Dr. Yan Kalika is the CEO and Chief Clinical Officer of Image Specialty Partners.  Image Specialty Partners, headquartered in West Sacramento, CA, and the independent specialty dental care practices it supports operate multiple partners on the West Coast.

Colosseum Dental Group raised in excess of €1 billion of loan facilities for refinancing and to finance future growth and acquisitions. Colosseum Dental Group operates more than 620 dental clinics and 50 labs in eleven European markets and employs over 12,500 dental professionals serving in excess of six million patients. Colosseum Dental Group’s majority shareholder is the Swiss investment firm Jacobs Holding. Jacobs Holding also has a majority investment in North American Dental Partners.

Thurston Group’s portfolio company, Gen4 Dental Partners, has closed on a $315 million credit facility. The financing which was used to refinance existing indebtedness and fund acquisitions under LOI, was significantly oversubscribed and led by Man Varagon. Founded in 2021 and headquartered in Tempe, Arizona, Gen4 is a next generation dental service organization with ~110 offices across 14 states and is supported by 190+ doctors and 100+ doctor partners.  Gen4 has completed 45+ acquisitions since 2021. This transaction aims to provide Gen4 with enhanced flexibility and resources to further expand its footprint and invest in advanced technologies. Lamonte Jensen is the CEO of Gen4.

Sage Dental of Neptune Beach has opened. The location is led by Dr. Brock Philips.

GPS Dental welcomed eight new practices, bringing their total to 85 support locations.

  • Gentle Care Dentistry in Las Cruces, New Mexico
  • Neely Dental in Vandalia, OH
  • New Teeth Dental in Houston, TX
  • New Teeth Dental in League City, TX
  • Omni Dental in McMurray, PA
  • Omni Dental Shadyside in Pittsburgh, PA
  • Akron Smile Complete Health Dentistry in Akron, OH
  • Shirer Family Dentistry in Aiken, SC

Heartland Dental continued to grow its network of supported practices through affiliations and collaborating to open de novos. In May, the company welcomed seven affiliation practices across OH, FL, OR, and NC and collaborated to open five de novos. Heartland Dental now supports over 1700 supported offices in 39 states and the District of Columbia.

Archway Dental Partners, formerly Dental Associates of CT, a multi-specialty dental platform and a 2023 Emerging Group to Watch winner, announced the acquisition of:

  • Pediatric Dental Center of Avon, Connecticut
  • All Smiles, Windsor Locks, Connecticut
  • Albano & Greenwald, Waterbury, Connecticut

Infinityblu marks 12th practice with Eyemouth Dental acquisition. Since its 2007 founding in Pitlochry by Chris Barrowman, Infinityblu has added 10 regional practices throughout Scottland, with over £10 million invested and over 150 staff employed in its team. The purchase of Eyemouth Dental Practice Ltd adds to Infinityblu’s existing Scottish Borders practices in Duns, Peebles, and Galashiels, making it 12 practices overall. Infinityblu has practices in Pitlochry, Dunkeld, Crieff, Auchterarder, Auchtermuchty, Alyth, Callander and Killin as well as its Borders locations. The group cares for over 60,000 patients and performs hundreds of dental implants every year, from single implants through to full arch implants.

mydentist opens new city centre practice at the cost of £1.5m. After a project lasting just over eight months, all the dentists and staff from the previous Chester site on 2-4 Upper Northgate Street have moved to the new site on Foregate Street, where patient appointments are now underway. There are 9 surgeries available in total at the new city centre practice for the 30,000 patients.

India’s Clove Dental launched its 500th clinic. Last year Global Dental Services, parent of Clove Dental, secured USD 50MM investment from Qatar Investment Authority (QIA), the sovereign wealth fund of the State of Qatar. Founded in 2011, by Amarinder Singh, the group, as on date, operates 422 company owned & managed dental clinics under the ‘Clove Dental’ banner, spread across 24 cities in 12 states. 78% of Clove Dentists are women. Learn more about Clove Dental from one of their founders.

Wathen Road Dental Practice, a three-operatory location with 1,847 active patients in Dorking, Surrey, England, has been sold. It has been owned by Neil Douglas for a number of years and was brought to market in 2023. Following a confidential sales process with Tony Walker at Christie & Co, the practice has been sold to Aaron Yusuf, who owns a group of four practices in South West London, and his partner, Mo Boga, who will be working in the practice as principal.

The US owners of Operose Health Ltd, which runs St Ann’s Road Surgery in South Tottenham, UK, notified the NHS about a change of ownership. According to a report presented to the primary care committee, which is part of the ICB, there was a 20,000 shortfall of appointments at St Ann’s as of April 2023. Operose operates around 60 GP practices in London, and at the time was owned by American health insurance company Centene. NHS North Central London Integrated Care Board (ICB), which is responsible for primary care locally, commenced a due diligence exercise to assess the standing of the new owner, HCRG Care Group, which is controlled by venture capital firm T20 Osprey Midco.

The DSO Deal RoundUp is sponsored by TUSK Practice Sales, the premier M&A Advisor for healthcare practices looking to maximize their value in a sale. With an in-depth understanding of the marketplace, collective experience of over 125+ years, and access to hundreds of buyers nationwide, TUSK helps their clients confidently pursue M&A transactions that maximize their long-term value. They offer their clients solutions that help them achieve their strategic and financial objectives. If you’re interested in knowing the true value of your practice, click here for a complimentary practice valuation.

Dykema Tusk

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