L Catterton-backed dental-implant company ClearChoice explores sale

L Catterton-backed dental-implant provider ClearChoice Holdings LLC is on the auction block, according to three sources familiar with the matter.

The company is projecting EBITDA for 2017 north of $50 million, two of the sources said. ClearChoice is likely to trade for a mid- to high-double-digit multiple of EBITDA, one added.

Goldman Sachs is financial adviser to L Catterton and ClearChoice on the process, two sources said.

The process is underway and is expected to command significant attention from big sponsors, sources said. ClearChoice is poised to benefit from its growth profile, dominant market share and strong management team, they said.

ClearChoice, Greenwood Village, Colorado, is led by CEO Kevin Mosher. The company was founded in 2005.

ClearChoice encompasses 32 dental-treatment centers focused exclusively on dental implants across 22 states. The company coordinates care among multiple doctors, offering consultation, lab work, creation of a patient’s teeth, procedure and recovery services at a single site. It employs more than 70 specialists, its website says.

Catterton, the consumer-focused sponsor formerly known as Catterton Partners Corp, made a growth equity investment in ClearChoice in October 2011. While terms of the investment weren’t disclosed in a news release, a Form D filed with the SEC at the time showed the firm raised almost $44 million from the investor.

As the process for ClearChoice gets underway, another dental company that has yet to trade hands is Georgetown, Texas, orthodontics-care provider Smile Doctors. The Sheridan Capital– and Thurston Group-backed company is projecting close to $38 million in 2017 EBITDA and is working with William Blair on a sales process, Buyouts has reported.

L Catterton’s other healthcare investments include Pain Doctor, a Scottsdale, Arizona, provider of pain-management services; CareDent, a European network of dental clinics; PatientPoint, a patient education company; and PetVet Care Centers, an operator of specialty veterinary hospitals and clinics.

The Greenwich, Connecticut, firm in November 2016 closed its eighth flagship buyout fund, L Catterton Partners VIII, at $2.75 billion.

A representative of Catterton declined to comment, while those with Goldman didn’t return a request for comment. ClearChoice officials couldn’t immediately be reached.

Action Item: L Catterton’s current portfolio: www.lcatterton.com/Brands.html#!/current

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