The Jordan Company (TJC) is buying Dental365 in a transaction valuing the dental services organization at $440 million, according to three people familiar with the deal.
Concluding a Jefferies-run sale process, the deal for Dental365 is anticipated to close in August, some of the people said. The New Hyde Park, New York-based company is said to have fielded three final bids, one person added.
Dental365, fueled by acquisitions, has grown rapidly over the last 18 months or so, sources said. The business marketed approximately $30 million of EBITDA, which implies the pending deal is valued at around 14.5x EBITDA, they said.
Based upon the dentistry platform’s current financials, Dental365 appears to mark what will be a huge outcome for existing investor Regal Healthcare Capital Partners, which targets businesses producing just $2 million to $10 million of EBITDA. The firm typically looks to commit between $15 million and $20 million of equity in each transaction, according to a previous PE Hub report.
Regal HCP was launched by Jon Santemma, the former global head of healthcare investment banking at Jefferies, and industry entrepreneur Dr. David Kim, whose background includes co-founding CityMD’s predecessor Premier Care Urgent Care. Just 18 months after collecting $86 million for its debut fund in 2018, Regal HCP in mid-2019 closed its sophomore fund at its hard cap of $165 million.
Scott Asnis, co-founder and CEO of Dental365, is listed as an adviser to Regal HCP on the firm’s website.
Dental365, with locations throughout the New York metropolitan area, Connecticut and New Jersey, states that it offers modern, concierge dentistry services – be it a general cleaning and check-up, cosmetic treatments such as porcelain veneers, or a restorative procedure like a dental bridge.
TJC, with offices in New York in Chicago, isn’t new to dental. The firm also currently owns Young Innovations, a manufacturer of branded dental products used in preventative, restorative and other procedures. TJC bought the dental supplies business in November 2017 from Linden Capital Partners for a total enterprise value a little below $800 million, sources told PE Hub at the time. Chicago’s Linden made more than 3.6x with the sale, sources said.
TJC previously owned Zest Anchors, investing in the maker of overdenture attachments in 2009. The firm in 2013 exited its investment via a sale to Avista Capital Partners, and the business in 2018 was sold to BC Partners.
From a new platform perspective, Dental365 marks TJC’s first new healthcare investment since mid-2019, when it bought healthcare technology business Vyne. Its other existing healthcare investment, Worldwide Clinical Trials, is growing increasingly long in the tooth. TJC backed the contract research organization for pharma and biotech companies in 2007.
TJC earlier this year raised $2.86 billion for Resolute Fund V, which is targeting $4 billion, according to PE Hub affiliate publication PEI Media. In November 2018, TJC closed The Resolute IV with approximately $3.6 billion in capital commitments.
TJC did not return PE Hub‘s requests for comment, while Regal HCP and Jefferies declined to comment.