Mid-Atlantic Dental Partners to Acquire Birner Dental Management Services, Inc

In March of 2016, GDN announced a brand new DSO, Mid-Atlantic Dental Partners, launched in the City of Brotherly Love. (Read it here.) Now, the DSO expands its footprint into the Rockies and Southwest.

Mid-Atlantic Dental Service Holdings LLC, operating as Mid-Atlantic Dental Partners and a portfolio company of S.C. Goldman & Company, LLC, have entered into a definitive agreement to acquire Birner Dental Management Services, Inc. The acquisition will increase Mid-Atlantic Dental Partners affiliate offices projected annual revenues to more than $100 million.

Birner was founded in 1995 and operates dental practice affiliates under the Perfect Teeth® brand throughout Colorado, Arizona, and New Mexico. With more than 100 dentists, Perfect Teeth’s philosophy of “letting dentists be dentists” melds perfectly with the “dental partnership” approach that has defined the business philosophy for both owners and associate dentists of Mid-Atlantic Dental Partners.

“The Mid-Atlantic Dental team and organization is a fantastic cultural fit with the business we have built over 23 years at Birner,” said Fred Birner, Chief Executive Officer of Birner. “Mid-Atlantic’s ability to provide the additional resources we need to continue to build and expand our brand while investing in our providers will allow Birner to provide better services to all of its patients. Perfect Teeth shares Mid-Atlantic’s belief that our dental professionals are the backbone of the company and our most valuable asset.”

Founded in 2016, Mid-Atlantic Dental Partners offers dentists a DSO model that supports dental professionals by providing marketing, financial, practice information and other business services so dentists can focus on delivering care to their patients. In addition, Mid-Atlantic Dental Partners offers associate dentists an opportunity to participate in the financial success of the practices.

“Taking the Birner platform to the next level is a truly exciting step in the continued development of Mid-Atlantic Dental Partners into a nationally recognized DSO. We look forward to partnering with Birner to accelerate the redevelopment of all of the Perfect Teeth-branded practices through investment in technology. Dentists, hygienists, dental assistants and office staff are the true assets of our practices, and we will strive to raise the importance of all dental professionals in improving the overall health care of patients and populations. We intend to make substantial investments in the people, equipment and technology of these dental practices.” -Mitchell Goldman, CEO of Mid-Atlantic Dental Partners

Over the past two years, Mid-Atlantic Dental Partners has built a management team of dental, operational, and entrepreneurial experience:

C. Mitchell Goldman, Chief Executive Officer
Leigh Feenburg, Chief Operating Officer
Sean Porrini, Chief Financial Officer
Dr. Richard Rush, Director of Quality Assurance and Compliance
Dr. Michael S. Ayes, Director of Business Development

“Mid-Atlantic Dental Partners set out on a unique path to revolutionize the way DSOs do business and are viewed. This is one more step in that direction, and we are extremely excited to take our team-first approach West and welcome the extremely talented Birner group to our family.” -Leigh Feenburg, COO of Mid-Atlantic Dental Partners

Birner will become Rocky Mountain Dental Services Holdings, a wholly-owned subsidiary of Mid-Atlantic Dental Services Holdings, at closing of the transaction. Birner will continue to be based in Denver, Colorado and will be locally managed. The newly acquired locations will continue to do business under the Perfect Teeth brand.

Under the terms of the agreement, an affiliate of Mid-Atlantic Dental Partners will purchase all of the outstanding shares of Birner Dental Management Services for $10.62 in cash. Shareholders will also receive one Contingent Value Right (CVR) per share of Birner common stock owned. The CVR entitles shareholders to an additional cash payment of up to $0.13 per share under certain circumstances following the closing of the transaction. The total consideration payable to Birner’s shareholders (assuming full payout of the CVR) represents a 105% premium to Birner’s closing share price of $5.25 on October 2, 2018.

Sean Porrini, CFO said, “Mid-Atlantic Dental Partner’s effort to integrate a patient’s oral health and overall health across the country has taken a leap forward with the merger of Birner Dental Management Services. All of us at Mid-Atlantic are extremely excited to expand our dental family to support this effort.”

Sources: Mid-Atlantic Dental Partners, Perfect Teeth, BusinessWire