Written by Dentistry Today Thursday, 26 August 2010 13:35
Private-equity firms could soon be in the dental business.
The firms have been have been submitting bids for two of the largest chains of dental offices, including Aspen Dental and Kool Smiles. The bid for Aspen Dental, which is based in Syracuse, N.Y., could be more than $500 million. The bid for Kool Smiles is separate and could end up being more than the bid for Aspen Dental.Aspen has around 300 offices. The company is working with the bank Moelis & Co.
Kool Smiles has about $80 million in earnings before interest, taxes, depreciation, and amortization.
This kind of sale is unique in the dental profession because most dentists work either by themselves or with one other dentist. It would be new ground for private-equity firms because they have not been involved in dentistry as much as other aspects of healthcare.