Coast Dental Buys PE-Backed SmileCare

SmileCare, which is backed by private equity investor Liberty Partners, has been acquired by Coast Dental Services Inc. Terms were not released. Harris Williams & Co. acted as the exclusive advisor to SmileCare. Santa Ana, Calif.-based SmileCare operates 57 dental practices in California, Nevada and Texas.

Harris Williams & Co. announces the sale of Dental Technology, Inc., (d/b/a SmileCare), a portfolio company of Liberty Partners (Liberty), to strategic buyer Coast Dental Services, Inc. (Coast Dental). Harris Williams & Co. acted as the exclusive advisor to SmileCare. The transaction was led by Todd Morris and Andy Dixon from the firm’s Healthcare & Life Sciences (HCLS) Group in San Francisco along with John Klim from the firm’s Richmond office.

“We continue to see strong M&A deal flow in the dental practice management market, with both strategic and financial buyers attracted to the industry’s solid fundamentals and long-term growth dynamics,” stated Todd Morris, a managing director at Harris Williams & Co. “It is a sector in which we have significant experience and where we expect to see a high level of continued transaction activity due to the fragmentation within the dental care industry as well as the many benefits that the DPM model provides.”

Through its subsidiaries, SmileCare operates 57 dental practices in CA, NV, and TX. Subsidiaries include Community Dental Services, Inc., a Knox-Keene licensed health care service plan providing prepaid dental care services in California, Nevada Dental Associates and SmileCare of TX. SmileCare was founded in 1977 and provides general dentistry and specialty services including orthodontics, oral surgery, endodontics, periodontics and pediatric dentistry. SmileCare is based in Santa Ana, CA.

Liberty is a New York based private equity investment firm which has committed more than $1 billion to middle market private equity investments in manufacturing, business services and education-related companies. Liberty typically seeks to deploy $20 million to $75 million of equity for controlling or substantial-minority positions in North American-based companies through a range of transaction structures – leveraged buyouts, corporate divestitures, recapitalizations, going-privates, build-ups and growth financings.

Coast Dental is the largest provider of general dentistry and specialty dental care in the Southeast with 125 affiliated dental practices in Florida and Georgia. Coast Dental Services Inc. is a privately-held dental practice management company that provides comprehensive, non-clinical business and administrative services to its affiliated dental practices. The company was founded in 1992 by Dr. Adam Diasti and Dr. Derek Diasti and is headquartered in Tampa, FL.

Harris Williams & Co. (, a member of The PNC Financial Services Group, Inc. (NYSE:PNC), is the premier middle market advisor with a two-decade legacy of sell side excellence serving clients worldwide. The firm is focused exclusively on the middle market providing sell side and acquisition advisory, restructuring advisory, board advisory, private placements and capital markets advisory services. The firm’s HCLS Group focuses on transactions across the spectrum of healthcare market segments. For more information, contact Turner Bredrup, James Clark or Cheairs Porter in Richmond at +1 (804) 648-0072 or Todd Morris in San Francisco at +1 (415) 288-4260.

Investment banking services are provided by Harris Williams LLC, a registered broker-dealer and member of FINRA and SIPC, and Harris Williams & Co. Ltd, an Appointed Representative of Sturgeon Ventures LLP, which is authorised and regulated by the Financial Services Authority. Harris Williams & Co. is a trade name under which Harris Williams LLC and Harris Williams & Co. Ltd conduct business in the U.S. and Europe, respectively.