Harvest Partners has acquired Dental Care Alliance (DCA) from Quad-C Management. DCA provides back office business support to general and specialty dental offices. The management team of DCA, led by CEO Mitch Olan and CFO David Nichols, will continue to lead the company under Harvest ownership.
Quad-C first invested in DCA in May 2012 and the company completed 15 acquisitions during the term of ownership. Revenues nearly doubled as a result of both organic growth and the add-on acquisition program. “This was a great investment for Quad-C,” said Tony Ignaczak, president of Quad-C. “We backed an incredibly strong management team in a healthcare sector we were targeting where we thought we could add value.”
Today, DCA is one of the largest dental support organizations in the US with 157 dental offices located in eight states supporting over 382 dentists. Back office business support services include human resources, marketing, purchasing, accounting and insurance management. DCA’s dental practices provide general dentistry, hygiene, pediatric dentistry, orthodontics, endodontics, periodontics and oral surgery. The company was founded in 1991 and is headquartered in Sarasota (www.dentalcarealliance.com).
“When we partnered with Mitch and Dave in May 2012, we believed this exceptional management team could drive market-leading results with the appropriate support,” said Frank Winslow, a partner at Quad-C. “However, we have far exceeded expectations and feel DCA is now one of the most attractive companies in the dental services sector.”
Quad-C is a middle market private equity firm that invests from $35 million to $125 million of equity in companies with enterprise values of $75 million to $400 million. Sectors of interest include business services, consumer, general industrial, healthcare, specialty distribution, and transportation & logistics. Quad-C was founded in 1989 and is headquartered in Charlottesville, VA (www.quadcmanagement.com).
“DCA is one of the most attractive platforms we’ve seen in the dental services sector,” said Jay Wilkins, Senior Managing Director at Harvest Partners. “Mitch, Dave and Quad-C have done an impressive job of building a growing, well-diversified platform. They had their pick of financial sponsors, so we are honored they chose to work with Harvest.”
Michael Greenman and Matt LoSardo led the transaction for Harvest which targets investments in companies with $20 million to $75 million of EBITDA and total enterprise values of $100 million to $750 million. Sectors of interest include industrial & energy services; manufacturing & distribution; consumer & business services; and healthcare services. Harvest currently manages approximately $2 billion of capital and is investing its sixth private equity fund. The firm was founded in 1981 and is based in New York with an additional office in Palo Alto (www.harvestpartners.com).
Senior debt was arranged by Golub Capital and Ares Capital. Mezzanine debt and preferred equity financing was provided by Crescent Capital. Jefferies advised Harvest and Houlihan Lokey was the financial advisor to DCA.
© 2015 PEPD • Private Equity’s Leading News Magazine • 7-6-15
