Avista Capital Partners buys Solmetex, provider of dental waste management

For healthcare-focused Avista, Solmetex marks its fourth Fund V platform, following investments in Vision Healthcare, Xifin and GCM.

Healthcare specialist Avista Capital Partners has agreed to acquire Solmetex, which helps dental practices with waste management and regulation compliance.

For New York’s Avista, Solmetex marks its fourth investment out of Fund V and its third investment of the year. The transaction is expected to close in Q1 2021. 

AVALT, a family office, is exiting its investment in connection with the deal, while existing investor Gemini Investors will roll equity. 

Led by chief executive Nick Mozzicato, Solmetex is a provider of amalgam separators and other waste compliance products, serving dental providers in both the US and Canada. Simply put, the Marlborough, Massachusetts business helps dental practices run their offices safely. 

Avista’s investment is poised to support future growth of its products and offering, fueling global expansion, the firm said. 

“Our investment in Solmetex represents an attractive opportunity to acquire the clear market leader in an indispensable category within the dental industry,” said Sriram Venkataraman, a partner at Avista. “With deep customer relationships, strong recurring revenues, a durable portfolio, and a new product pipeline, we believe Solmetex has the potential for robust domestic and international expansion.”

For Avista, the investment follows an active year of investing through the pandemic. 

The firm closed its 50 percent acquisition of Vision Healthcare in June, valuing the European direct-to-consumer healthcare company at an aggregate value of €305 million (approximately $336 million). In February, Avista completed its purchase of Xifin, a software-as-a-service-based provider of revenue-cycle-management solutions tailored to the diagnostics industry. Xifin was purchased from GTCR. 

Solmetex, Vision and Xifin are all Fund V platform investments, along with its initial fund investment in 2019: GCM, an outsourced manufacturer of high-precision components for the medtech industry. 

In recent portfolio activity, Avista-backed Arcadia Consumer Healthcare in October acquired Naturelo, expanding into the fast-growing universe of nutritional supplements

In September, Avista’s National Spine & Pain Centers joined forces with Prospira PainCare, a portfolio company of Enhanced Healthcare Partners and Webster Equity Partners, PE Hub reported

Avista, founded in 2005 as a spinout from DLJ Merchant Banking, closed its fourth vehicle in 2017, collecting more than $800 million, PE Hub previously wrote. The firm had raised more than $600 million for its fifth flagship as of April, an SEC filing showed.

Piper Sandler advised Solmetex on the transaction, while Ropes & Gray provided legal counsel and Alvarez and Marsal accounting advice. Kirkland & Ellis offered legal counsel to Avista on the transaction.