Private equity firm Sentinel Capital Partners has sold MB2 Dental, which bills itself as a dental partnership organization (DPO), while Charlesbank Capital Partners has acquired a majority interest in funds associated with Sentinel Capital Partners and is investing in the DPO.
Headquartered in Dallas, MB2 Dental offers general dentistry services, orthodontics, pediatrics, prosthodontics, and periodontics. Its unique partnership model enables affiliated dentists to enjoy the clinical benefits of private practice and the infrastructure, compliance, marketing, and purchasing advantages of a traditional dental service organization (DSO), according to the company.
MB2 Dental also said that it has grown rapidly through de novo openings, add-on acquisitions, and strong existing-office growth since its founding in 2008. During its partnership with Sentinel, MB2 Dental grew from 85 affiliated practices to 275 and expanded from six states to 24 with more than 200 additional doctor owners.
“It has been an extraordinary experience working with MB2’s talented and dynamic management team as the business expanded exponentially over the past three years,” said Paul Murphy, a partner at Sentinel.
“MB2 has demonstrated the ability to attract and retain capable and highly motivated entrepreneurial dentists by offering clinical autonomy and the opportunity to be owners of their own practices. We are confident that MB2 is well-positioned for future growth and success,” Murphy said.
“Working alongside Sentinel, MB2’s first institutional investor, has been extremely rewarding and has given us the opportunity to capitalize on the strengths of our unique business model,” said Dr. Chris Villanueva, founder and CEO of MB2. “We expect to continue expanding our platform in existing and new geographies, and we thank Sentinel for helping take us this far.”
Villanueva, management, and MB2’s dentist owners reinvested a substantial percentage of their equity in the new ownership structure, according to the company. Charlesbank Capital Partners holds the rest of the ownership.
“We have had a highly successful three years with Sentinel and are grateful for the opportunities they helped provide our dentists,” Villanueva said.
“Our rapid growth is a testament to the success of MB2’s business model and tremendous base of over 545 doctors. We are proud of our unique approach and doctor-driven culture. We believe we are well-positioned to strengthen and grow our platform with the support of Charlesbank,” he said.
“We are very impressed by the platform Dr. Villanueva and his team have built, supported by what we believe is truly a best in class culture,” said Brandon White, managing director at Charlesbank.
“We see significant M&A opportunity in the fragmented dental services market, and we believe that our investment will enable MB2 to accelerate its proven acquisition strategy as well as continue to develop its suite of shared services to support value creation,” White said.