Equicapita buys Shaw Group of Dental Laboratories

Canadian private equity firm Equicapita last month acquired Shaw Group of Dental Laboratories, a Toronto-based network of dental laboratories.

No financial terms were disclosed. The seller was the company’s owner-operator James Kerr.

Established in 1944, Shaw Group has a customer base that includes more than 1,500 dentistry professionals located in Canada and the United States.

The acquisition is Equicapita’s tenth to date and its first in the healthcare sector. It was led by Managing Director Adam Jezewski.

This week, Equicapita announced Ali Rezaei joined Shaw Group as deal partner, CEO and president.

PRESS RELEASE

Equicapita Announces Acquisition of Shaw Group of Dental Laboratories

TORONTO, ONTARIO (December 20, 2018) – Equicapita Income Trust and Equicapita Investment Corp. (collectively “Equicapita”) are pleased to announce the completion of the acquisition of Shaw Group of Dental Laboratories (“Shaw Group”) by a wholly-owned subsidiary of Equicapita (the “Acquisition”).

Founded in 1944, Shaw Group is one of the leading networks of dental laboratories in Ontario, with locations in Toronto, London, Ottawa, Kingston and Brampton. Shaw Group, whose diverse customer base includes over 1,500 dentists, has an established reputation for technical leadership and outstanding customer service.

“The opportunity to acquire a successful healthcare product supply business with a growing base of recurring revenue adds both geographic and industry diversification to Equicapita’s investment portfolio. James Kerr, Shaw Group’s owner-operator, and the other members of Shaw Group’s management team have consistently demonstrated their commitment to building the business and supporting its extensive customer base” said Equicapita’s Managing Director, Eastern Canada, Adam Jezewski. “Equicapita has targeted investment opportunities in mature healthcare businesses due to the non-cyclical, growing demand for their products and services and favorable long-term outlook, driven by an aging population. In addition to meeting these criteria, Shaw Group has committed executive and laboratory managers and a talented group of technical, sales and administrative staff. We are fortunate and excited to have the opportunity to work with the entire Shaw Group team to continue strengthening and growing the business going forward”.

Equicapita and our new Shaw Group colleagues will continue building the legacy that James Kerr has worked tirelessly and passionately to build. “From our initial meetings with Shaw Group management and visits to each laboratory we realized that Shaw Group has a unique and strong culture. We’re grateful to James for his decision to entrust Equicapita with continuing his legacy at Shaw Group and we are committed to supporting the ongoing growth and success of the business.” said Michael Cook, co-founder and Director of Equicapita.

Consistent with Equicapita’s investment mandate of assembling a diversified portfolio of long-established Canadian businesses, Shaw Group has 74 years of operating history serving dentists in communities across Ontario and the northern U.S. Shaw Group’s history of generating consistent, profitable growth, along with the continuity of operations by its dedicated staff and excellent customer and supplier relationships, represent cornerstones of Equicapita’s investment strategy.

Shaw Group is Equicapita’s tenth portfolio company acquisition, its first healthcare investment and the first investment completed by Equicapita’s Eastern Canadian office since its opening in April 2018. Equicapita’s deal team was led by Adam Jezewski, with key contributions from Hass Keshavji, Kerri Furlong and Matt Barr. Equicapita retained Norton Rose Fulbright Canada LLP as legal advisors in connection with the Acquisition.

About Equicapita

Founded in 2013, Equicapita is a private company buyout fund with offices in Calgary, Alberta and Burlington, Ontario with over $170 million in AUM focused on acquiring private, Canadian businesses with enterprise values ranging from $5 million to $50+ million.

For more information please contact:

Adam Jezewski, Managing Director, Eastern Canada
Tel: 905.336.8951
E-mail: adam@equicapita.com