American Dental Partners sell to private equity firm

The American Dental industry faced a huge shake up when one of the largest groups was sold to a private equity group. The plans for JLLpartners would have us think they’ll be far more consolidation in the next several years with this being their first acquisition in the dental industry to date. We will follow closely to their progress in the next several years t see how they grow or restructure.

American Dental Partners Inc. said Monday that it agreed to be acquired for about $317 million by a group led by the private equity firm JLL Partners Inc.

The company, based in Wakefield, Mass., has affiliations with 27 dental group practices with 282 dental facilities located in 21 states.

Under terms of the deal, its shareholders would get $19 per share in cash for each of its outstanding shares. That represents an 83 percent premium over the stock’s closing price of $10.38 on Friday.

Its shares rose $8.20, or 79 percent, to $18.58 in afternoon trading Monday after rising to a 52-week high of $18.71 earlier in the session.

American Dental said a special committee of its board members negotiated the deal and recommended it to the full board, but it still needs shareholder approval.

The buyers would also assume $81 million in outstanding debt, boosting the value of the transaction to about $398 million.

Under terms of the deal, American Dental can seek acquisition proposals from other parties for 40 calendar days from the date of the merger agreement, and New York-based JLL Partners has the right to match a superior proposal.