EFFINGHAM, Illinois--Heartland Dental Care, Inc., a dental practice management company with 235 affiliated dental offices across 12 states, has announced a significant minority equity investment in the company made by Code Hennessy & Simmons LLC.
The investment in Heartland represents a partnership among CHS, founder Dr. Richard Workman, the shareholders, dentists and team members of Heartland.
"We look forward to the opportunity to partner with CHS to continue our growth strategy," said Dr. Richard Workman, DMD, chief executive officer and president of Heartland.
"Our business has significant momentum, both through acquisitions and opening new offices throughout the country," Workman added.
"With the support of our new financial partners we will be able to continue to grow in markets we serve today and to expand into new regions," said Patrick Bauer, Heartland chief operating officer.
CHS is a Chicago-based private equity firm specializing in private equity investments and recapitalizations of middle market companies in partnership with management. CHS targets well-managed companies focused on growth with enterprise values between $100 million and $1.0 billion.
Funds for CHS' investment in Heartland come from CHS Private Equity V LP, a $1.3 billion investment fund formed in 2005.
"We are excited to partner with Dr. Workman and one of the leading providers of practice management services to the dental industry," said Edward Lhee, partner at CHS. "We look forward to continuing the company's strong track record of growth and value-added services for its dental customers."
UBS Investment Bank acted as financial advisor to Heartland. Fifth Third Bank, acting agent for a syndicate of nine banks, and Ares Capital Corporation provided mezzanine financing to recapitalize Heartland's existing debt and to support the future growth of the company.
"The CHS investment validates our strategy and vision for planned and sustainable growth at Heartland," added Bauer.
Heartland adds six practices
Six practices were added to the Heartland roster in the first half of 2008 to bring the total number of practices to 210.
The company acquired two practices in Crescent Springs, Ky. and Lancaster, Ohio and opened four new dental facilities in St. Charles, Mo., Cincinnati, Ohio, Bullhead City, Ariz., and Spring Hill, Tenn.
"We are pleased to have these six offices as a part of the Heartland family," said Workman. "Each is in a location that will allow us to continue our delivery of world-class dental care in a hometown practice environment."
"We plan to add more offices within the next six months, including multiple single-office practices as well as group acquisitions," added Workman.
For more information, please visit the Company's web site at Heartland Dental Care.
To read more about partnership agreements, go to www.dentaleconomics.com/display_article/297646/54/none/none/OnFea/Companies-ink-partnership-agreement.
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