Dentalcorp Holdings Ltd., Canada’s largest dental companies supplier, mentioned Friday it has agreed to be acquired by U.S. personal fairness agency GTCR LLC in a deal valued at $2.2 billion.
The announcement comes as Dentalcorp carries an estimated C$1.1 billion in whole debt and a debt-to-equity ratio of about 60 per cent, in response to monetary web sites together with AInvest and SimplyWallSt.
Underneath the settlement, GTCR funds will buy all excellent shares of the Toronto-based firm for $11 in money per share, representing a 33 per cent premium to Dentalcorp’s closing worth on Sept. 25. The transaction values the corporate at $3.3 billion on an enterprise foundation.
Dentalcorp’s founder, chairman and CEO, Graham Rosenberg, and president and CFO, Nate Tchaplia, are rolling a portion of their holdings into the brand new construction, together with funding agency L Catterton. Mixed, the group controls greater than half of the corporate’s voting energy and has dedicated to supporting the deal.
“This transaction affirms the numerous worth inherent in our enterprise and gives our shareholders with speedy and engaging money consideration at a major premium,” Rosenberg mentioned in a press release. “As a non-public firm, Dentalcorp will profit from enhanced flexibility to execute our long-term technique, spend money on know-how {and professional} improvement, and proceed increasing our community of main dental practices throughout Canada.”
GTCR managing director John Kos mentioned the Chicago-based agency sees Dentalcorp as a “companion of alternative” in Canadian dentistry. “We stay up for leveraging GTCR’s lengthy historical past of investing in healthcare and multi-site companies companies to help Dentalcorp’s continued concentrate on scientific excellence,” he mentioned.
Associated: Dentalcorp reviews document $45.6M in free money circulation in second quarter
Particulars of the deal
The $11-per-share worth additionally exceeds Dentalcorp’s 52-week excessive. An impartial overview by INFOR Monetary valued the corporate’s shares between $9.72 and $12.14.
The settlement requires approval by two-thirds of shareholders and a majority of minority buyers underneath Canadian securities guidelines, in addition to courtroom approval in British Columbia. Assuming these situations are met, the deal is predicted to shut within the first quarter of 2026.
Upon completion, Dentalcorp’s shares will likely be delisted from the Toronto Inventory Alternate, and the corporate will stop to be a public issuer. Its management staff, together with Rosenberg and Tchaplia, is predicted to stay in place.
Dentalcorp, based in 2011, operates greater than 550 practices throughout Canada, making it the most important community of dental clinics within the nation.
The corporate has declared a quarterly dividend of two.5 cents per share, payable Oct. 21. It might pay one other dividend in early 2026, topic to closing situations.
Associated: Dentalcorp expects $21.4M in income after buying 30 dental practices final 12 months
Advisors
Canaccord Genuity and INFOR Monetary suggested Dentalcorp’s particular committee, whereas Moelis & Firm acted for GTCR. Authorized counsel included Blake, Cassels & Graydon LLP for Dentalcorp and Goodmans LLP for GTCR.