CPE News (6/27/2019) – 123Dentist, Canada’s largest majority Canadian-owned network of dental practices, has raised $425 million, including $300 million in committed growth capital and a further $125 million accessible from both equity and debt partners.
The financing included an equity investment from private equity firm Peloton Capital Management and a refinancing of 123Dentist’s existing syndicated credit facilities co-led by Royal Bank of Canada and Bank of Montreal.
Peloton Capital Management, through its first fund, committed $75 million in equity.
The funds will be used to accelerate 123Dentist’s expansion program. 123Dentist will accelerate its expansion across Canada to complement its existing network of over 70 practices in Ontario, British Columbia, Alberta, Manitoba, and Quebec and further strengthen its back office, marketing, and operational capabilities for its partners.
photo credit: 123Dentist
123Dentist’s ‘Dentist First’ Strategy Attracts Support from Equity Partner to Accelerate Growth Across Canada
Largest majority Canadian-owned network of dental practices continues to expand its platform across the country with strategic support and growth capital from Peloton Capital Management
June 27, 2019 06:00 AM Eastern Daylight Time
VANCOUVER, British Columbia & TORONTO–(BUSINESS WIRE)–123Dentist, Canada’s largest majority Canadian-owned network of dental practices, today announced that it has raised $425 million, including $300 million in committed growth capital and a further $125 million accessible from both equity and debt partners. The funds received, which will be used to accelerate 123Dentist’s expansion program, include an equity investment from private equity firm Peloton Capital Management and a refinancing of 123Dentist’s existing syndicated credit facilities co-led by Royal Bank of Canada and Bank of Montreal.
With this injection of strategic capital, 123Dentist will accelerate its expansion across Canada to complement its existing network of over 70 practices in Ontario, British Columbia, Alberta, Manitoba, and Quebec; and further strengthen its back office, marketing, and operational capabilities for its partners.
“Our vision since day one was to establish 123Dentist as a national network built by dentists for dentists. That is why we encourage clinic level ownership for dentists to ensure both the continued success of their practice and optimal care for their patients,” said Dr. Amin Shivji, CEO and practicing dentist at 123Dentist.
“We have been successful in executing our vision because we have stayed true to the needs of the dental community. In an increasingly complex profession, our dentist first, patient focused strategy resonates with practicing dentists intent on doing what they love – dentistry. We align with the individual needs of our dentist partners and deliver on our core promises of practice-by-practice flexibility and long-term partnership solutions that reflect the unique needs of each of our dentist partners. As a result, we continue to exceed our growth projections. We have created what we believe is Canada’s best model and platform for dental practice partnerships. With Peloton and our banking partners, we are now well capitalized to accelerate our growth strategy,” said Dr. Shivji.
123Dentist delivers its support services through a decentralized approach that provides dentists in its network the flexibility to create a customized partnership that addresses their preferred level of assistance and contribution by 123Dentist. The company employs a network of regional managers with deep industry experience that are empowered to make decisions at the practice level. 123Dentist can support each practice in their day-to-day operations and provide traditional back-office functions, as well as the benefit of volume purchasing from a wide range of suppliers. “In short, we are a dentist community that inspires collaboration between our partners to deliver exceptional care to our patients,” said Dr. Shivji.
Peloton Capital Management Extends its Industry Expertise to 123Dentist
Members of the Peloton team bring extensive domain expertise in the dental industry to 123Dentist, having previously led an investment and acquisition of Heartland Dental, the largest dental support organization in the United States with over 900 offices and more than 1,500 supported dentists across 37 states. In addition, Pat Bauer, CEO of Heartland Dental, will be joining the 123Dentist board of directors, bringing his extensive expertise as an added value to the investment. The Peloton team’s extensive expertise in finance and banking, track record establishing sustainable growth strategies, and industry connections will play an important role in 123Dentist’s continued success.
“123Dentist has created a culture that is built around long-lasting, successful, and sustainable partnerships, and is unique in providing ownership at the practice level with supported autonomy,” said Steve Faraone, Managing Partner at Peloton Capital Management. “We feel that this flexible approach is unique in the marketplace and allows those supported by 123Dentist to put the delivery of excellent patient care at the center of everything they do. 123Dentist is very well positioned to significantly expand both its reach and market leadership across the country.”
The 123Dentist National Platform was launched in July 2017. The company is a majority dentist-owned, Canadian dental support organization with practices across the country and offices in Vancouver and Toronto. Dr. Amin Shivji is the CEO and an experienced operator of dental practices, having opened his first practice in 1993. 123Dentist enables dentists to focus on providing optimal care to their patients, while an experienced team provides a wide range of support services. 123Dentist offers different partnership models to meet the unique needs of each individual dentist, including the opportunity to retain a minority interest. For additional information, dentists can visit doctors.123dentist.com and patients can learn more at 123dentist.com.
About Peloton Capital Management
Peloton Capital Management is a private equity firm that uses a long-term investment philosophy and sector-focused strategy in building a portfolio of North American companies that present compelling opportunities for value creation. Headquartered in Toronto, the company is led by a blue-chip team of partners with extensive private equity experience. For more information please visit: pelotoncapitalmanagement.com.
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