TORONTO--(BUSINESS WIRE)--Peloton Capital Management (PCM), a Canadian private equity firm with a long-term approach to middle-market buyouts in the North American market, today announced that it has made an investment of C$75 million in 123Dentist, the largest Canadian-owned network of dental practices. The majority of the capital will be invested upfront, with the balance available to 123Dentist in the form of an equity line of credit. Capital provided by PCM will support 123Dentist’s expansion across Canada to complement its existing network of over 70 practices in Ontario, British Columbia, Alberta, Manitoba, and Quebec; and further strengthen its back office, marketing, and operational capabilities for its practice partners.
123Dentist is a Canadian owned and operated business that was built by dentists for dentists. It has been providing dentists in key markets across the country, and at any stage of their careers, with an individually tailored and sustainable partnership and transition model that also supports full clinical autonomy. 123Dentist aligns with the individual needs of each dentist partner to deliver on its core promises of practice-by-practice flexibility and long-term partnership solutions that reflect the unique needs of each dentist partner.
“As our first deal, this investment in 123Dentist is a significant milestone for the PCM team. It shows our progress since launching, and establishes PCM as an active private equity firm that can source and execute attractive investments that not only align with the key aspects of our investment strategy but also reinforce our core differentiators in the market,” said Steve Faraone, Managing Partner at PCM. “We’ve structured this investment to ensure 123Dentist has the runway it needs to execute on its vision of establishing the business as a national platform, supporting a network of successful dental practices with excellent patient care at its core.”
The 123Dentist model and platform closely aligns with PCM’s investment strategy. 123Dentist, a founder-controlled business, was seeking a long-term, knowledgeable Canadian partner with deep relationships to support an aggressive buy-and-build partnership strategy. The PCM team brings deep sector expertise, having previously led the acquisition of Heartland Dental, the largest network of dental practices in the United States with over 900 offices and more than 1,500 supported dentists across 37 states. 123Dentist also embraces “structural flexibility” in partnering with dentists, much in the same way that PCM has established a co-control relationship with Dr. Amin Shivji, CEO of 123Dentist.
RBC Capital Markets acted as exclusive financial advisor to PCM on the transaction.
About Peloton Capital Management
Peloton Capital Management is a private equity firm that uses a long-term investment philosophy and sector-focused strategy in building a portfolio of North American companies that present compelling opportunities for value creation. Headquartered in Toronto, the company is led by a blue-chip team of partners with extensive private equity experience. For more information please visit: pelotoncapitalmanagement.com.
The 123Dentist National Platform was launched in July 2017. The company is a majority dentist-owned, Canadian dental support organization with practices across the country and offices in Vancouver and Toronto. Dr. Amin Shivji is the CEO and an experienced operator of dental practices, having opened his first practice in 1993. 123Dentist enables dentists to focus on providing optimal care to their patients, while an experienced team provides a wide range of support services. 123Dentist offers different partnership models to meet the unique needs of each individual dentist, including the opportunity to retain a minority interest. For additional information, dentists can visit doctors.123dentist.com and patients can learn more at 123dentist.com.