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Berkshire Partners to buy majority of Affordable Care Inc.

Berkshire Partners LLC said Thursday it has agreed to buy a majority of Affordable Care Inc. American Capital Equity is the seller. Financial terms weren’t announced but Reuters News valued the deal at more than $800 million. Raleigh, North Carolina-based Affordable Care is denture- and implant-services provider, supporting a network of more than 200 affiliated practices in 39 states under the retail names Affordable Dentures and Affordable Dentures & Implants. Jefferies LLC and William Blair & Company LLC acted as financial advisors to ACI.

PRESS RELEASE

BOSTON–(BUSINESS WIRE)–Berkshire Partners LLC, a Boston-based investment firm, has entered into a definitive agreement to acquire a majority interest in Affordable Care, Inc. (“ACI”), alongside management, from American Capital Equity. ACI is the leading dental support organization for affiliated dental practices that focus exclusively on tooth replacement services. Terms of the transaction were not disclosed.

Headquartered in Raleigh, North Carolina, ACI was founded in 1975 and is now the largest denture- and implant-services provider in the U.S., supporting a network of more than 200 affiliated practices in 39 states under the retail names Affordable Dentures and Affordable Dentures & Implants. The company’s affiliated practices offer a range of tooth replacement services including dentures, dental implants and tooth extractions. The company’s unique, highly-focused business model enables dentists to provide high-quality, low-price dental prostheses and same-day service to over 400,000 patients annually.

“With a 40-year operating history and a reputation for exceptional service, ACI has earned its position as a clear market leader,” said Larry Hamelsky, Managing Director of Berkshire Partners. “We believe that the company’s highly-differentiated business model offers a compelling value proposition to patients and affiliated practice owners.”
“We are excited to invest in ACI and look forward to working alongside the company’s leadership team,” added Randy Peeler, Managing Director of Berkshire Partners. “We hope to capitalize on the company’s leading position in tooth replacement services to continue to build on its long track record of growth.”
“American Capital Equity has been a great financial partner to Affordable Care,” said Doug Brown, Affordable Care’s President and CEO. “Likewise, Berkshire Partners’ strong retail experience, its penchant for accelerating the trajectory of great companies, and its philosophical alignment with ACI should enable the company to confidently enter its next phase of growth.”
Jefferies LLC and William Blair & Company, LLC acted as financial advisors to ACI. Ropes & Gray served as legal counsel to Berkshire Partners. King & Spalding served as legal counsel to American Capital Equity and ACI.
About Affordable Dentures & Implants
Affordable Dentures was founded in 1975 and today is the largest denture-services provider in the U.S. with more than 200 affiliated practices in 39 states. Each practice is individually owned and operated by a licensed, general dentist, and each practice has its own on-site dental lab which enables same-day denture service and cost savings that translates to tremendous value for patients.
Affordable Dentures provides dentures, partials, extractions and implants which are all delivered with the highest levels of professionalism and care. More than six million patients have received services from an Affordable Dentures-affiliated practice.
For more information about Affordable Dentures, please visit www.affordabledentures.com.
About Berkshire Partners:
Berkshire Partners, a Boston-based investment firm, has invested in over 110 middle market companies since 1986 through eight private equity funds with aggregate capital commitments of over $11 billion. Berkshire has developed specific industry experience in several areas including consumer products and retail, business services, industrials, communications and transportation. Berkshire has a strong history of partnering with management teams to grow the companies in which it invests with the goal of consistently achieving superior investment returns. The firm is currently investing from Berkshire Fund VIII, a $4.5 billion fund raised in 2011. The firm seeks to invest $50 million to $500 million of equity capital in each portfolio company. For additional information, visit www.berkshirepartners.com.
About American Capital Equity:
American Capital Equity III, LP (“ACE III”) is a $1.1 billion private equity fund focused on acquiring control equity positions in companies with $5 to $25 million of EBITDA. ACE III is managed by a subsidiary of American Capital Asset Management, LLC, which is wholly owned by American Capital, Ltd., and based in Bethesda, MD. For more information, please refer to www.acequity.com.