Private equity firm Cressey & Co. LP has invested in Dental Services Group, as consolidation continues between doctors and dentist groups.
Dental Services, headquartered in Minneapolis, is a dental laboratory network that provides fixed, removable, implant, orthodontics and sleep dentistry products and services. The company's products are used by dental practice management organizations, independent dentists, universities and hospitals. Dental Service's CEO, Buddy Pickle, and his management team will maintain ownership positions in the business. Terms of Cressey's investment weren't disclosed.
Cressey, which is based in Chicago and Nashville, invests in health care services, provider and information technology businesses. The firm closed a $615 million fund in December to focus on health care investments. In November, Cressey agreed to sell Encompass Home Health and Hospice to Health South Corp. (NYSE: HLS) for $750 million.
PwC and Ropes & Gray LLP advised Cressey on the deal. Golub Capital was sole lead arranger on a loan to support the deal, and also made an equity co-investment.
As far as the dental industry goes, we are expecting more M&A between practices. For more, see Dentists Will Unite, Just Like Doctors Did.