O2 Invests in Frontier Dental Laboratories

O2 Investment Partners has acquired Frontier Dental Laboratories, a maker of dental prosthetics.

Frontier Dental Laboratories is a full service, multi-site dental laboratory that provides high-end dental prosthetics, removable dental products and implants primarily for the cosmetic dentistry industry. The company’s products include full arch and multi-unit anterior crowns and bridges, veneers, single and multi-posterior crown and bridges, as well as single unit and full mouth implants.

Frontier has more than 500 customers, primarily private practices, and is led by President Brent West, and VP of Sales and Marketing Gil Villavecer. The company operates through two dental laboratories in El Dorado Hills, CA and Vancouver, BC (www.frontierdentallab.com).

The investment by O2 will be used to expand the company’s product and services, increase its technological capabilities, and to grow its customer base. “Brent, Gil and the team at Frontier have been at the top of their game for decades. Our job is to continue to support their vision for that business,” said Luke Plumpton, a partner at O2. “The newest technology, more employees, whatever needs to be done to increase their already incredible level of customer service and increased customer demand, that’s what that team wants to do. And we’re behind them 100%.”

“Our marketing capabilities combined with our world-class products and strong customer service focus have allowed Frontier to rapidly expand over the past several years,” said Mr. West. “We brought in O2 as a financial backer to help support our growth objectives and continue bringing Frontier’s product and service capabilities to our customers. We have built strong and lasting relationships with our existing customers and would like to hire additional support to offer the same level of service and expertise to new customers. We also have an aggressive plan to expand our production capabilities to serve the growing needs of our existing and new clients, and we wanted a financial partner like O2 to support us in doing that.”

O2 makes control investments of $5 million to $75 million in companies with EBITDAs from $2 million to $10 million located anywhere in the US and Canada but prefers the Midwest and the Great Lakes regions. Sectors of interest include niche manufacturing, niche distribution, select service businesses, and certain technology businesses. In October 2017, the firm held a final closing of its Oxygen Fund with an above-target $100 million of capital commitments. O2, based in the Detroit suburb of Bloomfield Hills, is backed by the Orley family which has been investing in operating businesses and real estate since 1950 (www.o2investment.com).

“There is a tremendous opportunity for growth during the next decade in this industry, and we intend to be at the forefront of that market expansion with our technological leadership, marketing and focus on customer service,” said Mr. Villavecer. “We are confident O2 is the right partner to help support us in achieving our goals for the future and we look forward to a rewarding partnership.”

The investment in Frontier is O2’s fifth investment in the first half of 2019 and currently the firm has six additional transactions under letter of intent. This activity may make 2019 O2’s most active year since its founding in 2010.

© 2019 Private Equity Professional | July 8, 2019

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