Linden Capital invests in Smile Doctors


Linden Capital has made an undisclosed investment in Georgetown, Texas-based Smile Doctors, an orthodontic dental support organization. No financial terms were disclosed. As a result of the transaction, Linden will become the majority shareholder in Smile Doctors while previous backer Sheridan Capital will have a minority stake. William Blair served as financial adviser to Smile Doctors and Houlihan Lokey did likewise for Linden. UPDATE:  Twin Brook Capital Partners provided $325 million in financing to support Linden’s acquisition of Smile Doctors.

PRESS RELEASE

CHICAGO–(BUSINESS WIRE)–Sheridan Capital Partners (“Sheridan” or “SCP”) announced today it has completed a majority recapitalization of existing portfolio company Smile Doctors (“the Company”). Through the recapitalization, Linden Capital is joining as lead investor while Sheridan and management are both rolling over equity.

“Working with the entire Smile Doctors team to build the national leader in orthodontics has been a true pleasure,” said Jonathan Lewis, Managing Partner at Sheridan Capital Partners. “Together we have expanded the business from its 12 clinics in Texas and Georgia to over 90 clinics across 11 states. This recapitalization validates the exceptional growth of the business during our ownership, and our continued investment in the Company will allow us to further expand the Smile Doctors’ brand, culture, patient experience, and clinical excellence to more communities across the U.S.”

Sean Dempsey, Managing Director at Sheridan, commented, “In Smile Doctors, we successfully found the rare combination of passionate, dedicated founders and team members and an undeniable market opportunity. We are proud to have contributed to the success achieved so far and remain extremely excited about the Company’s future.”

Scotte Hudsmith, CEO of Smile Doctors, added, “Sheridan has been a supportive and highly-valued partner to our team over these past few years, and we are pleased they will continue to support us in this next phase. We are also excited to partner with Linden and look forward to collaborating with them as we continue to bring beautiful, confident smiles and genuine, unforgettable experiences to more and more patients nationwide.”

McGuire Woods LLP and Kirkland & Ellis LLP served as legal advisors to Sheridan and Linden, respectively. William Blair served as exclusive financial advisor to Smile Doctors. Houlihan Lokey served as exclusive financial advisor to Linden. Twin Brook Capital Partners led the debt syndication for the transaction.

The recapitalization was led by Lewis, Dempsey, Nicholas Rowland, and Jonathan Gavron at Sheridan Capital Partners. Terms of the transaction were not disclosed.

About Smile Doctors LLC
Smile Doctors LLC is the largest orthodontic dental support organization with over 90 affiliated practices in eleven states. Headquartered in Georgetown, TX, and founded by Dr. Scott Law, Scotte Hudsmith, and Dr. Dana Fender, Smile Doctors focuses exclusively on developing and growing affiliated orthodontic practices. Orthodontists can focus on patient care while receiving the support of experienced professionals who are committed to the growth and success of their practices. Support provided by Smile Doctors includes services related to operations, accounting, marketing, revenue cycle management, and human resources. For more information, please visit: https://www.smiledoctors.com/.

About Sheridan Capital Partners
Sheridan Capital Partners is a Chicago-based private equity firm focused on leveraged buyouts in the healthcare and consumer sectors. Sheridan targets businesses with enterprise values between $25 million to $150 million operating in the U.S. or Canada, and actively brings its strategic resources to management teams and owners in order to help accelerate growth, build enduring value, and achieve superior results. For more information, please visit: http://sheridancp.com/.

About Linden Capital Partners
Linden Capital Partners is a Chicago-based private equity firm focused exclusively on leveraged buyouts in the healthcare industry. Linden’s strategy is based upon three elements: i) healthcare specialization, ii) integrated private equity and operating expertise, and iii) strategic relationships with large corporations. Linden invests in middle market platforms in healthcare services, in addition to medical products, pharmaceuticals, and specialty distribution. For more information, please visit www.lindenllc.com.

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