MB2 Dental Announces Recapitalization Event With New Investor Warburg Pincus, Solidifying Company Growth MilestoneNov 13, 2024

CARROLLTON, Texas--(BUSINESS WIRE)--MB2 Dental ("MB2" or the "Company"), the first and largest dental partnership organization (DPO) nationwide, today announced a strategic investment from Warburg Pincus.

Transaction Highlights

• $525 million investment from one of the world's leading private equity firms
• Offers liquidity options to the Company's doctor partners at a total enterprise value in excess of $3.5 billion
• Marks MB2 Dental's third recapitalization in the past seven years, each providing liquidity to all shareholders and affirming the Company's unique doctor-led partnership model
• Charlesbank Capital Partners will continue its longstanding partnership with the Company and is excited to support MB2's next growth phase

Growth

This transformative transaction is a testament to MB2 Dental's sustained growth and differentiated performance. Since Charlesbank's initial investment in 2021, MB2 has added over 450 new partnerships, and the Company's revenue and EBITDA have each grown by more than 30% per year.

The recapitalization reflects Warburg Pincus' conviction in MB2 Dental's growth opportunities. The Company continues to revolutionize the dental industry by empowering dentists to retain clinical autonomy while benefiting from a large organization's operational and financial support. Proceeds from the transaction will directly benefit over 700 doctor partners and accelerate investments in the value-added services that MB2's doctor partners can leverage to grow their practices and realize substantial value creation.

Dr. Chris Steven Villanueva, Founder and CEO of MB2 Dental, stated, "This is a significant achievement for MB2 Dental and our doctor partners. The ongoing support from Charlesbank, along with another top-tier investor in Warburg Pincus, reinforces our success in establishing a partnership model that meets the needs of our dentists. This new investment will enable our doctors to maintain uncompromising exceptional care and drive our continued success. While this recapitalization is a major milestone, it is just the beginning. MB2 is well-positioned to keep setting new standards for how large dental platforms should perform."

"Warburg Pincus' Healthcare and Capital Solutions teams are excited to partner with MB2 on its innovative approach to the dental services industry. MB2's commitment to empowering dentists and preserving the integrity of patient care, while enabling efficient practice management, makes them an exemplary partner. We look forward to collaborating with MB2's management and doctor partners to support their continued success," said Adam Krainson, Managing Director, Warburg Pincus, and José Arredondo, Principal, Warburg Pincus.

The new partnership with Warburg Pincus positions MB2 Dental to continue expanding its network of doctor partners. It provides greater opportunities for dentists to join an organization that fosters independence, collaboration, and growth.

"We have been thoroughly impressed by the substantial growth MB2 has driven since we first partnered with the company in 2021, and today's announcement underscores the success Dr. Villanueva and his exceptional team have achieved in recent years. We look forward to partnering closely with Warburg Pincus to further enable the company to reach its growth potential, and ultimately support MB2's network of talented doctor partners providing care to patients across the country," added Brandon White, Managing Director, Charlesbank.

The Company is excited to further its partnership with existing investors Charlesbank and KKR, as well as with new strategic investor Warburg Pincus. Moelis & Company served as financial advisor to MB2 Dental, and Houlihan Lokey served as financial advisor to Warburg Pincus. Kirkland & Ellis served as legal advisor to the Company, and Wachtell, Lipton, Rosen & Katz served as legal advisor to Warburg Pincus.

About MB2 Dental

Dallas-based MB2 Dental is a first-of-its-kind dental partnership organization (DPO) founded and led by dentist and entrepreneur Dr. Chris Steven Villanueva. The Company empowers dentists to preserve their profession by ensuring clinical autonomy and providing resources and support to its doctor owners. Since its founding in 2007, MB2 has partnered with more than 700 general and specialty dental practices across 43 states. For more information, visit mb2dental.com or connect with the Company on Facebook, LinkedIn and Instagram.

About Warburg Pincus

Warburg Pincus LLC is the pioneer of private equity global growth investing. A private partnership since 1966, the firm has the flexibility and experience to focus on helping investors and management teams achieve enduring success across market cycles. Warburg Pincus funds have invested over $18 billion in more than 180 innovative healthcare companies around the world, including, Summit Health/CityMD, Modernizing Medicine, Ensemble Healthcare Partners, and Bausch + Lomb. The firm also has a successful track record of investing in capital solutions related transactions historically. The Warburg Pincus Capital Solutions Founders Fund, backed by over $4.0 billion in commitments, consists of investments including, DriveCentric, Excelitas, Nord Security, Service Compression, and MIAX.

Warburg Pincus has more than $86 billion in assets under management, and more than 230 companies in their active portfolio, diversified across stages, sectors, and geographies. The firm has invested in more than 1,000 companies across its private equity, real estate, and capital solutions strategies. The firm is headquartered in New York with offices in Amsterdam, Beijing, Berlin, Hong Kong, Houston, London, Luxembourg, Mumbai, Mauritius, San Francisco, São Paulo, Shanghai, and Singapore. For more information, please visit www.warburgpincus.com or follow us on LinkedIn.

About Charlesbank

Based in Boston and New York, Charlesbank Capital Partners is a middle-market private investment firm with more than $22 billion of total assets. Charlesbank focuses on management-led buyouts, growth capital financings, opportunistic credit, and technology investments. The firm seeks to invest in companies with sustainable competitive advantage and excellent prospects for growth. For more information, please visit www.charlesbank.com.

Contacts

MB2 Dental
Lindsey Calamoneri
[email protected]

Charlesbank Capital Partners
Ryan FitzGibbon / Alexa Ottenstein / Peter Gavaris
Prosek Partners
[email protected]

Warburg Pincus
Kerrie Cohen
[email protected]

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