Welsh, Carson, Anderson & Stowe-backed GeoDigm has entered into a definitive agreement to acquire National Dentex (NASDAQ: NADX), an operator of dental laboratories for $98 million. For each share of National Dentex common stock, shareholders will receive $17 in cash, a 70% premium to its most recent closing price. BB&T Capital Markets and Signal Hill Capital Group acted as advisors, while Posternak Blankstein & Lund and Ropes & Gray provided legal counsel.
Private equity firms have invested in 40 dental-related companies since the beginning of 2007, according to the PitchBook Platform. The most popular industry segment for investment was Dental Clinics and Practices with 15 deals, followed by Practice Management with 5 deals. 2010 is on pace with three completed deals to top 2009, which had only eight deals, but it will probably not top 2008 during which there was 16 investments.