O2 Keeps Expanding in Dental Lab Sector

O2 Keeps Expanding in Dental Lab Sector

O2 has now closed six acquisitions for its Frontier Dental Lab Group platform

Frontier Dental Lab Group is a full-service, multi-site laboratory group that provides dental prosthetics for cosmetic dentistry, general dentistry, implants, and other removable dental products.

SOURCE: Getty Images

Frontier Dental Lab Group, a portfolio company of O2 Investment Partners, has acquired Friendship Dental Laboratories.

Friendship is a full-service dental laboratory offering a suite of fixed restorations and removable prosthetics – including crowns and bridges, implants, removables, and aligners – to private practices, governmental institutions, and dental support organizations (DSOs). Dental practices contract with DSOs to manage the administrative, marketing, and business sides of their dental practice.

Friendship, led by President George Diacoloukas with 90 employees, is headquartered in Rosedale, Maryland, with a second laboratory in nearby Baltimore, Maryland.

Frontier Dental Lab (FDL Group) is a full-service, multi-site laboratory group that provides dental prosthetics for cosmetic dentistry (anterior crowns and bridges, and veneers), general dentistry (posterior crowns and bridges), implants, and other removable dental products (dentures and nightguards).

Source: Frontier Dental Lab Group

FDL Group, led by President Brent West, is headquartered near Sacramento in El Dorado Hills, California. The group has approximately 575 employees across seven laboratories and has more than 6,000 customers throughout North America.

“Friendship is known as one of the leading full-service dental labs in the Mid-Atlantic and has experienced tremendous growth in recent years through the leadership of George Diacoloukas,” said Mr. West. “We couldn’t be more excited to have George and the rest of the Friendship team join the platform and look forward to sharing best practices.”

FDL Group’s first acquisition was the buy of Frontier Dental Laboratories in July 2019. In addition to today’s buy of Friendship, FDL Group has acquired four other dental labs including Wisconsin-based NuArt Dental (October 2019), California-based Burbank Dental Laboratory (March 2022), New York-based Dental Lab Aesthetics (May 2022), and Wisconsin-based D&S Dental Laboratory (August 2022).

“We are honored to partner with Friendship, a best-in-class dental lab that will be highly complementary to FDL Group and will bolster the platform’s presence in the Mid-Atlantic,” said Jimmy Frye, a vice president at O2. “George Diacoloukas is an outstanding leader, and we look forward to the collaboration between the Friendship and FDL Group teams.”

O2 makes control investments in companies with EBITDA of more than $5 million located anywhere in the United States and Canada but with a preference for the Midwest and the Great Lakes regions. The firm’s typical transaction size is $15 million to $50 million. Industries of interest include B2B services, technology, and select industrial companies.

Last month, O2 closed its latest fund, O2 Investment Partners Fund IV LP, with an oversubscribed $445 million in capital. The firm was founded in 2010 and is headquartered in the Detroit suburb of Bloomfield Hills, Michigan.

© 2023 Private Equity Professional | May 17, 2023

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