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Premier Dental Acquires a Dental Business From Guardian

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Premier Dental Holdings Inc. said it has completed a previously announced acquisition of Access Dental Services and South Texas Dental  from the Guardian Life Insurance Company of America.

Premier Dental is getting a dental service organization, or DSO, that provides support services for 63 dental offices in Texas, California and Alabama.

(Related: Principal Financial In Deal With Western Dental)

Premier Dental and Guardian closed on the deal Dec. 31, 2018.

The companies are not talking about how much Premier Dental paid for the DSO.

S&P Global Ratings said in a comment on the deal in December that Premier Dental took out a $145 million term loan to pay for the deal.

The Buyer

Premier Dental is the Orange, California-based parent of Western Dental Services.

New Mountain Capital, a New York-based private equity company, acquired Premier Dental in 2012.

Premier Dental and a sister company, Brident, have been supporting 249 dental offices in five states. Western Digital and Brident operate have been operating in Nevada, as well as in Arizona, California and Texas.

Western Dental has been a major supplier of dental services for enrollees in California’s Medicaid program.

Moody’s reported in 2017 that  Western Dental generates about $570 million in revenue per year.

Daniel Crowley, Western Dental’s chief executive officer, said in a statement that his company would like to make more deals, and that it would like to offer more orthodontic and specialty dental services.

S&P Global’s View

S&P Global said in its comment on the deal in December that Premier Dental is now one of the larger dental DSOs in the United States, but that the company operates in a competitive, fragmented market, with low barriers to entry.

If the company managed to pay down its debt, S&P Global would view that as temporary, the firm said.

“We expect the company to be acquisitive and to maintain an aggressive financial policy due to its private equity owners,” S&P Global said.


Moody’s has posted information about Premier Dental here,

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