The middle-market private equity firm The Jordan Company (TJC) has announced a definitive agreement to acquire Dental365 from Regal Healthcare Capital Partners, L.P. The New Hyde Park, New York-based dental practice has more than 50 locations across New York, New Jersey and Connecticut. The company has nearly doubled in size each year and has over 400,000 patient visits annually. In addition, it employs over 165 dentists and 800 staff members. According to an article from PEHub, the deal is valued at approximately $440 million, roughly 14.7x Dental365’s annual EBITDA.
TJC completed the acquisition through affiliates of The Resolute Fund V, L.P., which raised approximately $2.86 billion as of February 2021 to invest in a wide range of sectors.
Dental365 isn’t TJC’s first investment in the healthcare industry, however. In June 2019, the private equity firm acquired Vyne from Accel-KKR, which provides secure health information exchange and electronic healthcare communication systems, primarily for dental practices, health systems and hospitals. Another TJC portfolio company, Young Innovations, a manufacturer of consumable professional dental products, will also mesh well with the addition of Dental365. The new investment from TJC will help the company expand even further. Regal and its founders, Dr. David Kim and Jon Santemma, will remain minority investors in the company. The transaction is expected to close in August.
Kirkland & Ellis LLP acted as legal advisor to TJC. Ropes & Gray LLP acted as legal advisor and Jefferies LLC through its Global Essential Outpatient Healthcare franchise served as exclusive financial advisor to Dental365.
