123Dentist and Altima Dental announce strategic merger
On July 12, 2022, 123Dentist Inc. (“123Dentist”), Altima Dental Canada, Inc. (“Altima Dental”) and Altima’s Québec division, Lapointe Group, entered into a merger agreement to create one of the largest dental support organizations in Canada, with nearly 350 supported dental practices. As a result of the transaction, the resulting combined business will have a national footprint and support dental practices that provide a wide range of dental care to more than 800,000 Canadian patients, with over 2.5 million patient visits annually.
The transaction is being financed through equity capital provided by 123Dentist’s existing financial partner, Peloton Capital Management (“Peloton”), which will be raising additional funds in support of the transaction, and by new investors:
- KKR, a leading global investment firm acquiring an interest in 123Dentist through its investment funds;
- Heartland Dental, a KKR portfolio company and the leading dental support organization in the United States, that will enter into a strategic partnership with 123Dentist, providing access to its world-class continuing education programs, as well as its deep relationships with leading dental manufacturers and distributors to 123Dentist supported dentists and hygienists; and
- Sentinel Capital Partners, Altima Dental’s existing financial partner, which will maintain a minority ownership position in the combined entity.
The transaction is expected to close in the third quarter of 2022, subject to customary closing conditions, including clearance under the Competition Act (Canada).
Further information can be found on Business Wire’s website.
123Dentist is a leading dental support organization in Canada. It has grown from a single practice in Vancouver, owned by CEO Dr. Amin Shivji and two partners, to more than 250 supported practices and 3,500 team members. It offers alternative partnership models to meet the needs of each individual dentist, including the opportunity to retain ownership of the clinic.
Altima Dental is one of Canada’s longest-standing premier dental support organizations, founded and led by dentists, Dr. George Christodoulou and Dr. Sven Grail. It focuses on supporting superior patient care, best clinical practices, and true partnership with dentists.
Lapointe Group has been serving professionals and patients for 35 years. The Lapointe Group joined Altima Dental in 2018 and operates the Lapointe Dental Centres, a 100% Quebec banner of the Lapointe Group , with over 35 dental practices that provide the infrastructure for the practice of dental health professionals, offering a wide range of integrated services that enable dentists and denturists to optimize their practice and direct their full focus on patient care.
Peloton Capital Management is a private equity firm that uses a long-term investment philosophy and sector-focused strategy to partner with founders and management teams to help build exceptional businesses and create attractive returns for investors. Its primary focus is investing in services businesses within the Healthcare, Financial, and Consumer verticals in North America.
KKR is a leading global investment firm that offers alternative asset management as well as capital markets and insurance solutions.
Heartland Dental, majority owned by KKR, is a leading dental support organization in the United States providing non-clinical, administrative support services. Started by Dr. Rick Workman, DMD, as a single dental practice, it has evolved into affiliating with over 2,400 supported doctors in over 1,600 locations across 38 states.
Sentinel specializes in buying and building midmarket businesses in the United States and Canada in partnership with management. Sentinel targets aerospace and defense, business services, consumer, distribution, food and restaurants, franchising, healthcare, and industrial businesses.