Wednesday, September 05, 2012

Heartland Dental Care Up for Sale?

Heartland Dental Care is exploring a sale of the company.

Heartland Dental Care Inc, one of the largest dental practice management companies in the United States, is exploring a sale that could fetch as much as $1.4 billion, according to two people familiar with the matter.

The company, in which Chicago-based private equity firm CHS Capital Partners has a stake, has hired investment banks Jefferies and Moelis to find a buyer and has drawn interest mostly from other buyout firms, the people said.

The sources asked not to be identified because the process is not public.

Heartland Dental has about $120 million in annual earnings before interest, tax, depreciation and amortization (EBITDA) and could be sold for 10 to 12 times EBITDA, they added.

The auction is early in the second round and final bids are expected about a month from now, according to the people. Jefferies has offered to provide financing for potential buyers, they added.

The company is owned by its dentist founder and CEO Dr. Rick Workman and CHS Capital who made a minority equity investment in 2008.

Looks like it is time for Rick Workman to cash out.

Now, let's see about all of those promises made to Heartland dentists with their Employee Stock Ownership Plans. I wonder how those will work?

But, first a sale has to be completed.

Stay tuned....

No comments:

Post a Comment