Private equity firm Harvest Partners LP has closed a deal for dental business DCA Investment Holding LLC, from PE firm Quad-C Management Inc.
DCA, which stands for Dental Care Alliance, is a support organization with 157 offices in eight states. The Sarasota, Florida-based company provides back-office business support to dentists. Terms of the deal were not disclosed.
Consolidation in the dental industry is expected to continue as fragmented practices merge to cut overhead costs. Private equity interest in the space is underscored by transactions such as Gryphon Investors' creation of OneSmile LLC, a services organization in June, and Shore Capital Partners' recapitalization of Chicagoland Smile Group in April. For more, see Dentists Will Unite, Just Like Doctors Did.
Harvest, headquartered in New York, focuses on buying health care, business, consumer, industrial and energy services companies, as well as investing in the manufacturing and distribution sectors. Before the DCA deal, in January, the firm created an investment group, called Harvest Partners SCF LP, which advises business owners on structured equity and junior debt. One of Harvest's portfolio companies, AxelaCare Health Solutions, added intravenous therapy provider Ambient Healthcare in January.
Seller Quad-C, based in Charlottesville, Virginia, is a middle-market PE firm that makes business services, health care, transportation and logistics, consumer, industrial and specialty distribution investments. In October, the firm acquired consulting company Vaco.
Golub Capital and Ares Capital Corp. arranged debt for the deal. Crescent Capital provided mezzanine debt and preferred equity. Jefferies LLC advised Harvest, and Houlihan Lokey advised DCA.