Dental Acquisitions in Canada

Investment funds affiliated with GTCR completed the acquisition of dentalcorp Holdings Ltd. via a statutory plan of arrangement, acquiring all shares for C$11.00 per share in cash (with certain management/partner dentist rollover shares). The transaction valued Dentalcorp at approximately C$2.2 billion equity value and C$3.3 billion enterprise value and is expected to result in the company’s delisting from the Toronto Stock Exchange and cessation as a Canadian reporting issuer.

123Dentist entered into a merger agreement with Altima Dental and Lapointe Group to create one of the largest dental support organizations in Canada, supporting nearly 350 dental practices nationwide. The transaction is financed with equity from 123Dentist’s sponsor Peloton Capital Management, new investors KKR and Heartland Dental (a KKR portfolio company), and Altima’s sponsor Sentinel Capital Partners, which will also retain a minority stake in the combined business.

TriWest Capital Partners announced an investment in RecallMax in partnership with the company’s senior management team. RecallMax, founded in 2010 and headquartered in Calgary, Alberta, provides a SaaS recall optimization, scheduling, automated messaging, and analytics platform for dental practices and Dental Service Organizations across North America. The investment is intended to support the continued expansion of RecallMax’s platform.

MCA Dental Group Limited (MCA), an Ottawa-based dental service organization, received a significant follow-on equity commitment from Persistence Capital Partners along with an investor group led by DWS's private equity business. The new capital will support MCA’s continued expansion and growth strategy across Canada, building on PCP’s initial investment made in 2018.

Walter Capital Partners announced a partnership/investment in Clareo Dental Network, described as the largest domestic network of dental clinics in Québec, to support and accelerate its growth. The investment is intended to help Clareo expand to a network of more than 50 general and specialty dental clinics over the next five years.

Pamlico Capital completed a growth investment in Canadian Orthodontic Partners (COP), the Toronto-headquartered orthodontics-focused specialty dental support organization with more than 60 clinics across eight Canadian provinces. The transaction also represents Sheridan Capital Partners’ sale/exit of COP to Pamlico, with Twin Brook Capital Partners leading the debt syndication; terms were not disclosed.

MCA Dental Group Limited, a dental service organization headquartered in Ottawa, announced a new round of investment as part of its partnership with Persistence Capital Partners. The funding builds on an initial partnership established in early 2018 and is intended to support MCA’s growth, including investing in additional dental practices across Canada.

Peloton Capital Management (PCM) invested C$75 million in 123Dentist, a Canadian dental support organization and network of dental practices. The capital—mostly invested upfront with the remainder available via an equity line of credit—will support 123Dentist’s expansion across Canada and strengthen its back-office, marketing, and operational capabilities.