FOR MORE INFORMATION ON THIS TRANSACTION,
CONTACT:
James M. Frommelt jfrommelt@agio.com T 612 339 0500
Steven R. Tipler stipler@agio.com T 612 339 0500
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Goldsmith Agio
Helms Announces the Sale of its
Client
MicroDental
Laboratories, a Portfolio Company of Riverside Partners, to DTI
Dental Technologies, a Portfolio Company of HEALTHPOINTCAPITAL
PARTNERS
MINNEAPOLIS, MN –
March 12,
2007: Goldsmith Agio Helms is pleased to
announce the sale of its client, MicroDental
Laboratories (“MicroDental” or the “Company”), a portfolio
company of Boston-based Riverside Partners
(“Riverside Partners”), to DTI Dental Technologies,
Inc. (“DTI”), a portfolio company of
HEALTHPOINTCAPITAL PARTNERS II, L.P.
(“HEALTHPOINTCA-PITAL”). MicroDental is the premier
laboratory for cosmetic dentistry in the United
States.
TRANSACTION
HIGHLIGHTS
Founded in 1964, MicroDental has
developed strong relationships with the
nation’s
most prominent cosmetic dentists and is renowned for supplying award-winning, custom-manufactured restorative,
reconstructive and cosmetic dental products such as crowns, bridges, veneers,
implants, and dentures. MicroDental operates from three state-of-the-art facilities in
Dublin, California, Salt Lake City, Utah, and Las Vegas,
Nevada and maintains a laboratory at The Las Vegas Institute for Advanced Dental
Studies in Las Vegas, Nevada.
Multiple potential acquirers expressed strong
interest in MicroDental, which has built premier brands such as
Micro Advanced Ceramics and MACVENEERS, an industry-leading line of
highly aesthetic veneers. DTI, which operates 16 dental
laboratories in Canada and the United States, was chosen in large
part because of its experience in the dental laboratory industry and
its shared vision of the future of cosmetic
dentistry.
“The dental market represents one of the
fastest growing sectors in the medical technology industry,” stated
John H. Foster, Chairman of the Board of DTI and Chairman and
Managing Director of HealthpointCapital. “The dental
laboratory industry is a primary beneficiary of the public’s
increasing interest in and willingness to pay for improved dental
function and aesthetics. We were particularly attracted to
MicroDental because of its strong brand, the depth of its management
team and staff, and the relationships it has built through
unparalleled service to cosmetically-oriented dentists. The
combination of Micro and DTI will create significant value because
of its increased ability to utilize the latest in technology and
provide continuing education to its technicians and dentists, while
maintaining the service levels our clients expect.”
"We are proud to have partnered with the
management team and technical staff at MicroDental and are excited
about the prospects for the combined MicroDental and DTI
operations," said Steven F. Kaplan, Chairman of the Board of
MicroDental and a General Partner with Riverside Partners LLC.
He added “under Riverside’s ownership the Company grew organically
through the introduction of new innovative products as well as
through the add-on acquisitions of Sunrise Dental Ceramics in 2002
and Becden Dental Laboratories in 2006.”
Fred Walke, President of MicroDental, stated,
“Our management team is excited about the opportunity to join with
DTI. As the third largest company in the industry, and the
leading provider to the cosmetic dentistry market, we will be able
to bring even more value to our customers.”
James M. Frommelt, a managing director at
Goldsmith Agio Helms, commented, “The acquisition of MicroDental is
another example of Goldsmith Agio Helms’ growing healthcare
practice. Goldsmith Agio Helms continues to build on its ideal
combination of healthcare experience and deal-making expertise.”
“DTI’s acquisition of MicroDental instantly
transforms DTI into the premier player in cosmetic dentistry,” said
Steven R. Tipler, a vice president at Goldsmith Agio Helms.
“MicroDental features a very talented management team and provides
an extremely attractive platform for future growth. We firmly
believe this will be an outstanding business
combination.”
THE
COMPANY MicroDental Laboratories (www.microdental.com) is the
world’s largest and most advanced cosmetic dental laboratory,
setting the industry standard for innovation and quality for more
than 40 years. MicroDental works closely with leading
manufacturers, cosmetic dentists and professional organizations to
help develop new materials, dental procedures and meaningful
continuing educational opportunities for dental industry
professionals. The company holds numerous patents, and many of
the procedures MicroDental has developed have become industry best
practices. To further focus its efforts on the rapidly growing
advanced dental aesthetics segment of cosmetic dentistry,
MicroDental Laboratories created the Micro Advanced Cosmetics (MAC)
division in 1997. MAC team members are the most highly trained
technicians in the industry, using the most advanced pressed ceramic
materials and the most sophisticated CAD/CAM and color matching
technology available today to create MACVENEERS – the highest
quality and the most specified veneer brand in the industry.
For more information, please visit www.macveneers.com.
THE
BUYER DTI
Dental Technologies Inc. (www.dtidental.com),
headquartered in Vancouver, British Columbia, custom designs and
fabricates crowns, bridges, dentures, cosmetic appliances and
orthodontic appliances for its customers, dentists serving patients
in need of restorative and cosmetic dentistry. DTI was founded in
1997 and has grown into one of the largest dental laboratory
companies in the world with over 400 employees and a network of 16
labs in Canada and the United States. Consistency, quality, and
communication are the cornerstones of success for each of DTI’s labs
and enable DTI to deliver “Peace of Mind” to its clientele.
DTI is a portfolio company of HEALTHPOINTCAPITAL PARTNERS II, L.P.
(www.healthpointcapital.com
), a values-driven, research-based private equity firm exclusively
focused on the orthopedic and dental device businesses. HEALTHPOINTCAPITAL has
$600 million of institutional capital under management.
THE
SELLER Founded in 1989, Riverside
Partners (www.riversidepartners.com)
is a middle market private equity firm currently investing Riverside
Fund III, L.P. The fund focuses on growth oriented companies
primarily in the healthcare and technology industries.
Riverside is particularly experienced at partnering with founders,
owners and management teams and it brings substantial domain
expertise and operating experience to its portfolio companies. The
partners at Riverside have managed more than $500 million in
investments in over 50 companies. Riverside is currently
focused on companies with revenues between $20 - 200 million and
with $5 - 25 million of EBITDA.
ABOUT
GOLDSMITH AGIO
HELMS
Goldsmith Agio
Helms (www.agio.com) is one of the nation's leading independent
investment banking firms providing sophisticated corporate finance advisory services to middle-market businesses. The firm's
services include mergers and acquisitions,
private placements of debt and equity, distressed advisory
and restructuring, and financial advisory and opinion services. The
firm operates internationally from its offices in Minneapolis, New
York, Chicago, Los Angeles, and
London.
If you would like more information about this
transaction, contact James M. Frommelt (jfrommelt@agio.com) or Steven
R. Tipler (stipler@agio.com) at
612-339-0500.
Minneapolis • 225 South Sixth Street • 46th
Floor • Minneapolis, MN 55402 •
612 339 0500
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8575
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Angeles, CA 90067 • 310 551
4111
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