New Mountain Capital Buys LT Smile Corporation in Bankruptcy Sale

Dentistry Today


All of the assets and operations of LT Smile Corporation and certain of its subsidiaries have been acquired under section 363 of the US Bankruptcy Code by certain credit investment funds managed by and affiliated with New Mountain Capital. The transaction was previously approved by the US Bankruptcy Court for the Southern District of Texas.

The Benevis family of companies are among LT Smile’s subsidiaries. LT Smile filed for relief under Chapter 11 of the US Bankruptcy Code in August. The Benevis companies manage dental support operations in 16 states for nearly 200 dental clinics, largely marketed under the Kool Smiles Dental brand before a January 2018 settlement with the US Department of Justice for alleged Medicaid fraud.

The sale was supported by LT Smile’s current debtor-in-possession lenders, who provided incremental financing to strengthen the company during the transition and provide additional growth capital, LT Smile said. The buyer, New Benevis Holdco, said that it will continue to provide its industry-leading, non-clinical support services to dental practices nationwide.

“The acquisition by New Mountain’s credit funds is a significant milestone,” said Scott Hornbuckle, chief financial officer.

“New Mountain is a leading healthcare investor with extensive experience building businesses, which will enable us to transform Benevis into a stronger company. We now have an improved financial position as we continue on our mission to help dentists provide the highest-quality services and care to millions of patients each year,” said Hornbuckle.

“We want to thank our team members and dental partners for their unwavering commitment to providing expert patient care and our business affiliates and lenders for their firm confidence in our business throughout this process,” said Hornbuckle.

“Benevis continues to focus on the health and safety of its team members, dentists, and patients with enhanced safety protocols and increased orthodontic teledentistry consultation options. We have emerged from this process stronger than ever and continue to position Benevis for long-term success,” said Dr. Dale Mayfield, chief clinical officer of Benevis.

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