On November 13, Warburg Pincus, a private equity firm based in New York City, announced that it recapitalized MB2 Dental Solutions, a dental service organization (DSO) that is based in Carrollton, Texas.
Warburg invested $525 million into MB2 Dental. The transaction offered liquidity options to MB2’s doctor at a total enterprise value in excess of $3.5 billion.
The seller was Charlesbank Capital Partners, a private equity firm located in Boston, Massachusetts. The company will continue its longstanding partnership with MB2 Dental has partnered with more than 700 general and specialty dental practices across 43 states and has approximately 1,000 physicians under its umbrella.
Warburg Pincus is a global private equity firm focused on growth investing. Warburg Pincus has raised 20 private equity and two real estate funds. The firm has more than $83 billion in assets under management and an active portfolio including more than 260 companies. Since its founding in 1966, it has invested more than $116 billion in some 1,000 companies globally. To date, Warburg Pincus has invested more than $17 billion in more than 180 health care companies and been an especially active investor in the life sciences arena.
The new partnership with Warburg Pincus positions MB2 Dental to continue expanding its network of doctor partners. Moelis & Company served as financial advisor to MB2 Dental, and Houlihan Lokey served as financial advisor to Warburg Pincus. Kirkland & Ellis served as legal advisor to MB2 Dental, and Wachtell, Lipton, Rosen & Katz served as legal advisor to Warburg Pincus.
“We have been thoroughly impressed by the substantial growth MB2 Dental has driven since we first partnered with the company in 2021, and today’s announcement underscores the success Dr. Villanueva and his exceptional team have achieved in recent years,” said Brandon White, Managing Director, Charlesbank. “We look forward to partnering closely with Warburg Pincus to further enable the company to reach its growth potential, and ultimately support MB2 Dental’s network of talented doctor partners providing care to patients across the country.”
According to data captured in the LevinPro HC database, this acquisition marks the 424th Physician Medical Group deal of 2024, and the eighth in the DSO specialty. There were four DSO transactions announced throughout 2023. Additionally, since the start of 2024, MB2 Dental has completed 41 transactions.
