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Affordable Care Adds On

Affordable Care Inc., a Kinston, N.C.-based provider of dentures, has acquired five dental practices from South Carolina-based Fields Dental Management LLC and Piedmont Dental Center. No financial terms were disclosed for the deal, which was partially financed by junior and senior subordinated debt from Affordable Care shareholder American Capital.

 

PRESS RELEASE

American Capital, Ltd. (Nasdaq: ACAS) announced today that in June it invested in its portfolio company Affordable Care, Inc. to support the acquisition of a management services platform supporting five dental practices from Fields Dental Management LLC and Piedmont Dental Center P.A., a dental care provider with locations in South Carolina. Affordable Care is a dental practice management services company that supports a network of affiliated dental practices providing removable prosthetics and related services. American Capital's investment takes the form of junior and senior subordinated debt.

“We are pleased to support Affordable Care's growth with this complementary add-on acquisition,” said Brian Graff, American Capital Regional Managing Director. “Since 2006, American Capital has backed Affordable Care, the industry leader in providing management services to affiliated dental practices with convenient, low-cost denture services.”

American Capital, including is global fund management business, has approximately $21 billion in capital resources under management(1) in over 290 portfolio companies. American Capital has invested directly and through its global asset management business approximately $8.2 billion in the last twelve months, $4.9 billion year to date and $20 million quarter to date. Not including funds under management, American Capital has invested approximately $4.4 billion in the last twelve months, $1.8 billion year to date and $20 million quarter to date. American Capital assisted in the syndication of approximately $1.3 billion of senior debt for its portfolio companies in the last twelve months and over $300 million year to date. For more information about American Capital's portfolio, go to http://www.americancapital.com/our_portfolio/our_portfolio.html .

“The acquisition of Piedmont Dental presents an excellent opportunity for Affordable Care to expand its footprint in South Carolina,” said Jon Isaacson, American Capital Managing Director, Buyouts. “The Piedmont Dental employees have driven exceptional same store sales growth and we expect continued success with Affordable Care.”

“Affiliating with the Piedmont Dental practices will add scale to an established platform led by a proven management team,” said Sean Eagle, American Capital Principal, Buyouts. “Affordable Care management continues to execute and grow its business and we are excited to support this highly successful group.”

American Capital first invested in Affordable Care in 2006. Founded in 1975 and based in Kinston, NC, the Affordable Care network is America's largest provider of dentures. The company currently provides dental practice management and on-site dental laboratory services supporting a network of 134 affiliated dental practices operating under the brand of Affordable Dentures. The company operates in 35 states (predominantly east of the Mississippi) with approximately 175 affiliated dentists. The Affordable Care-affiliated practices provide low-cost dentures and same-day service with no appointment necessary.

Piedmont Dental was founded in 1979 and has locations across South Carolina. Piedmont Dental's products and services, which include removable prosthetics, extractions, relines and repairs, closely mirror those offered by the other dental practices affiliated with Affordable Care.

“We are glad to work with our partners at American Capital to add five of the Piedmont Dental offices to our network of affiliated practices,” said Tim Pate, CEO, Affordable Care. “We have come to rely on the hard-working and flexible team at American Capital over the years and look forward to continuing our relationship through this exciting transaction.”

ABOUT AMERICAN CAPITAL

American Capital, with $21 billion in capital resources under management(1), is the only private equity fund and the largest alternative asset management company in the S&P 500. American Capital, both directly and through its global asset management business, originates, underwrites and manages investments in private equity, leveraged finance, real estate and structured products. American Capital and its affiliates invest from $5 million to $800 million per company in North America and euro 5 million to