PE Plans to Leverage its Deep Operational and Financial Resources to Strengthen and Grow a DSO

Simply Beautiful Smiles (SBS), founded by veteran dentist Dr. Louis D’Angelo, began with a single office in 2000. In 2014, The Beekman Group, a PE firm, partnered with D’Angelo in a growth capital transaction to form a dental support organization, Delaware Valley Management Holdings, Inc. (DVM).

The Beekman Group, which manages over $800 million of assets and focuses on lower middle-market services companies based in the U.S., provided the hands-on help to execute a disciplined acquisition growth plan. Together with Beekman, DVM and its affiliates have grown to support a network of 20 practices in New Jersey and Pennsylvania and have more than doubled the DSOs revenue and cash flow.

SBS and its affiliated dental offices provide general and multi-specialty dentistry to adults and children, operating seven branded dental practices in New Jersey and four branded practices in Pennsylvania.  The dental group practice also manages seven affiliated offices. Their patient base covers a wide range of socio-economic demographics. Because it serves such a vast array of patients, the company often sees economic trends play out in real-time.

In 2017, Group Dentistry Now reported that they developed a program to provide much more affordable dental care for those experiencing hardships as a result of an uncertain economy. The program provides discounted member rates, saving members 20-65% on most dental treatments and procedures. (Read entire article here.)

After creating value through accelerating growth in partnership with the Delaware Valley Management Holdings, now, The Beekman Group has completed the sale of the DSO to Sun Capital Partners, Inc., a private investment firm specializing in leveraged buyouts and investments in market-leading companies. DVM seems to be a well-aligned with Sun Capital’s interest in consumer-facing industries. Dr. Louis D’Angelo, who spends significant time and effort in training and mentoring other doctors within his 20 offices, will remain with the business as CEO.

“The Beekman Group has been a true partner over the last five years. Their experience in building leading dental service organizations and hands-on involvement proved invaluable to our team as we executed on a disciplined acquisition growth plan. I know Beekman will continue to be successful partnering with owners and entrepreneurs in the lower middle market to grow and professionalize their businesses.” -Dr. Louis D’Angelo, CEO and Chief Dental Officer, DVM

Sun Capital Partners, Inc. is a global private equity firm focused on identifying companies’ untapped potential and leveraging its deep operational and financial resources to transform results. Sun Capital is a partner that is recognized for its investment and operational experience, including expertise in the consumer products and services, food and beverage, industrial, packaging, chemicals, building products, automotive, restaurant and retail sectors. Since 1995, Sun Capital has invested in more than 365 companies worldwide with revenues of approximately $50 billion across a broad range of industries and transaction structures, including ClearChoice Dental Implant Centers, headquartered in Greenwood Village, CO. ClearChoice is the only pure-play, national provider of same-day dental implant services in the U.S, operating 39 centers in 22 states.

“Dental service organizations provide essential care within their communities, and we are very excited to be working with Dr. D’Angelo. We’re looking forward to applying our expertise to strengthen this great company and are eager to continue making acquisitions in the dental services space.” -Jonathan Borell, Managing Director, Sun Capital

Sun Capital sees several areas where it can support the DSO’s growth, including driving local awareness to add new patients, attracting and integrating new practices, and building out the company’s infrastructure to support a larger organization.

Sources: Simply Beautiful Smiles,  The Beekman Group, Sun Capital Partners

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