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MB2 Dental Announces Recapitalization Event With New Investor Warburg Pincus, Solidifying Company Growth Milestone

November 13, 2024
Starkville Daily News

MB2 Dental, the largest dental partnership organization in the U.S., has announced a significant recapitalization event with a $525 million investment from Warburg Pincus, a leading private equity firm. This investment values MB2 at over $3.5 billion and marks the company's third recapitalization in seven years, aimed at providing liquidity to its doctor partners.

Since Charlesbank Capital Partners invested in MB2 in 2021, the company has expanded its partnerships by over 450 and achieved annual revenue and EBITDA growth exceeding 30%. The new funding from Warburg Pincus is expected to enhance MB2's operational capabilities and support its unique model that allows dentists to maintain clinical autonomy while benefiting from the resources of a larger organization.

Dr. Chris Steven Villanueva, MB2's Founder and CEO, emphasized the importance of this investment for the company and its partners, stating it reinforces their commitment to exceptional patient care and positions MB2 for future growth. Warburg Pincus expressed enthusiasm about collaborating with MB2, highlighting the company's innovative approach to dental services and its dedication to empowering dentists.

The partnership with Warburg Pincus is anticipated to further expand MB2's network of doctor partners, fostering an environment of independence and collaboration. Brandon White from Charlesbank noted the impressive growth MB2 has achieved since their initial partnership, and he looks forward to supporting the company in reaching its full potential.

In addition to Warburg Pincus, MB2 will continue its relationships with existing investors Charlesbank and KKR. Financial advisory roles were filled by Moelis & Company for MB2 and Houlihan Lokey for Warburg Pincus, with legal advisement provided by Kirkland & Ellis and Wachtell, Lipton, Rosen & Katz.

Founded in 2007, MB2 Dental has partnered with over 700 dental practices across 43 states, focusing on preserving clinical autonomy for dentists while providing essential support. Warburg Pincus, with over $86 billion in assets under management, has a strong track record in healthcare investments, further solidifying the potential for MB2's continued success in the dental industry.

Tags
Industry
healthcare
private equity
dental services
Type
fundraising
Strategy
growth
Geography
US
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