JLL Partners puts American Dental Partners up for sale

Harris Williams and Houlihan Lokey scored the sell-side adviser mandate, with a process poised to launch imminently.

JLL Partners is seeking a buyer for American Dental Partners about eight years after taking the dental practice management company private, several sources told PE Hub.

An auction for American Dental Partners is poised to formally kick off next week during the J.P. Morgan Healthcare Conference in San Francisco, one of the people said. Some pre-process management meetings took place before the holidays, this source and two others said.

Harris Williams and Houlihan Lokey are advising on the sales process, the people said.

American Dental Partners is expected to produce adjusted 2020 Ebitda in the mid-$60 million-range, some of the people said.

While too early in the process to determine a likely valuation, similar assets have traded in the 11x to 13x range.

JLL, a New York-based middle market private equity firm, completed its acquisition of American Dental Partners in February 2012 through a take-private transaction valued at $392 million.

Led by CEO Kevin Trexler, American Dental Partners provides business services to more than 273 multi-specialty dental group practices spanning the U.S., the company’s website states. Services provided include operations management, financial services, organizational development, information technology, among other things.

As American Dental Partners gears up for a sale, other dental support organizations of scale are working towards getting a deal done.

That includes Gryphon Investors’ Smile Brands, which is in the late phases of its Moelis-run auction process. The San Francisco private equity firm fielded first-round bids from potential buyers in late October, PE Hub reported.

New Mountain Capital’s Western Dental & Orthodontics is also on the auction block, returning to the market last year via Goldman Sachs and Deutsche Bank, PE Hub wrote in November.

In recent industry activity, Jacobs Holding, the family office of Switzerland’s Klaus J. Jacobs, clinched a deal in 2019 for North American Dental, providing an exit for Abry Partners and The Riverside Co.

Other PE-backed dental companies of scale include KKR’s Heartland Dental, L Catterton’s Dentalcorp and Aspen Dental, a portfolio company of Ares Management, Leonard Green & Partners and American Securities.

Houlihan Lokey declined to comment. JLL, American Dental Partners and Harris Williams representatives did not return PE Hub’s request for comment.

Action Item: Check out JLL’s latest Form ADV: