The Beekman Group has sold its portfolio company Northwestern Management Services (NMS), a dental practice management company, to Linden Capital Partners. The Beekman Group acquired a majority interest in Northwestern Management Services in December 2007.
Northwestern Management Services (NMS) provides management and administrative services and facilities for the Gentle Dental Group, a network of 21 retail-driven general and multi-specialty dental practices located in Southeast Florida. Gentle Dental provides general, cosmetic and specialty dental services. The company was founded in 2002 and is based in Boca Raton, FL (www.gentledentalgroup.com).
During Beekman’s investment period, the NMS platform grew from 10 to 21 fully-operational locations, more than doubling revenues and tripling profitability. The sale of NMS generated a 6x return on invested capital for both Beekman and members of the NMS management team. NMS is the second exit for Beekman’s first private equity fund, closed in July 2006. Together with its first exit, The Beekman Group has returned approximately 140% of total invested capital and still holds interests in four other portfolio companies.
“The Beekman Group has been a tremendous partner over the last five years. Their experience working alongside middle-market entrepreneurs proved invaluable to our team as we built an enduring platform and executed on a rapid growth plan through both new location openings and acquisitions. I look forward to future opportunities to work with them to build another great company,” said NSM’s CEO David Willens.
The Beekman Group makes control investments from $5 million to $25 million in privately held companies, family businesses in transition, operating divisions of large companies or small public entities interested in privatization. Typical acquisitions have revenues from $10 million to $200 million. Targeted industry segments include healthcare services, business services, financial services, and consumer. The firm is based in New York (www.thebeekmangroup.com).
“We are pleased to have partnered with David and the NMS management team in building a leading dental practice management platform in an attractive region,” said John Troiano, Managing Partner of The Beekman Group. “NMS represents another example of Beekman sourcing a promising small business and partnering with owner-managers to significantly grow their operations, despite the tough Florida economy. We wish Linden much success with its investment.”
Golub Capital acted as Sole Bookrunner and Administrative Agent on a senior credit facility and made an equity co-investment to support the acquisition of NMS by Linden Capital Partners. “We are excited to partner with Linden Capital Partners in a space that they know really well,” said Golub Capital Managing Director Stefano Robertson, who leads the firm’s healthcare efforts.
“Golub Capital proved to be very diligent and supportive of our investment thesis throughout the process,” said Tony Davis, a Partner at Linden Capital Partners. “Their healthcare experience and specific understanding of the dental practice management space made them an ideal partner not only to help us consummate the acquisition, but also to support our long-term growth initiatives. We are very happy to have partnered with them and look forward to doing so again.”
© 2012 PEPD • Private Equity’s Leading News Magazine • 10-11-12
