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BC Partners taps banks for Zest sale

Jun 29, 2022
Illustration of toothpaste forming a dollar symbol.

Illustration: Shoshana Gordon/Axios

BC Partners is seeking to sell Zest Dental Solutions, with SVB Securities and UBS managing the upcoming process, sources tell Sarah.

Why it matters: The global dental implants market is expected to surpass $6.31 billion by 2030, up from $3.84 billion in 2021, per Precedence Research. This is being driven by increased rates of poor eating habits, smoking, sugar consumption and an aging population.

  • That should bode well for Zest, which is considered the dominant player in overdenture attachments that are used to implant a full set of teeth.
  • The company also diversified via acquisitions of Danville Materials, a maker of small equipment and dental consumables, and Iveri Whitening.

Details: Zest could fetch more than $1 billion, including debt, per a Reuters report.

  • Axios confirmed this anticipated price tag, with sources adding that 2022 EBITDA should surpass $70 million.

Flashback: BC Partners in bought Zest in early 2018 from Avista Capital Partners.

Behind the scenes: Zest's main product is compatible with implant systems sold by those that would make natural strategic buyers, which suggests a sale to private equity is more likely.

  • Zest historically sold its dental products to other implant manufacturers, but in more recent years focused on building out its e-commerce and direct-to-dentist/DSO strategy.
  • This pivot has boosted margins and product price point, one source says, driving organic growth in the teens over the recent years.

BC Partners declined to comment.

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