The private equity arm of the Ontario Municipal Employees Retirement System has sold its stake in a U.S.-based network of dental practices.
Yesterday, the pension fund announced the sale to an affiliate of Roark Capital Group after acquiring Great Expressions Dental Centers, a dental support organization with 269 affiliated practices across 10 states, in 2011. “Great Expressions has achieved impressive growth since our investment in 2011, and has further solidified its position as one of the preeminent [dental service organizations],” said Mark Dolfato, managing director of OMERS private equity.
“Under OMERS ownership, Great Expressions has entered three new markets and added 108 new locations.”
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The pension fund touted its work with the company, including improving dentist retention, expanding business development and investing in training, marketing and human resources. “Great Expressions is OMERS private equity’s third successful exit of 2016, following Give and Go and Marketwired, and our eighth exit in the last three years as we continue to seek ways to harvest gains where we have created significant value for OMERS,” said Michael Graham, senior managing director and head of North America for OMERS private equity.
OMERS isn’t, however, disclosing the sale price of Great Expressions, nor the amount it paid for the company in 2011. The sale follows a recent deal involving U.S.-based Golfsmith International Holdings Inc. and Golf Town Canada Inc. that will see the retailers restructure under bankruptcy protection. The deal means a consortium of investors will take over Golf Town and OMERS will no longer own Golfsmith.
According to a 2013 article in the Detroit Free Press, Great Expressions had been growing rapidly amid a trend to consolidate dental practices. The model allows dental practitioners to focus on patient care, with the larger business handing the financial and administrative aspects of the practices, the article noted.
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At the time of the 2011 acquisition, Great Expressions had 152 affiliated dental offices in seven states. It purchased the company from affiliates of private equity firm Audax Group.