CITIC Capital leads acquisition of US dental firm

Florida-based private equity firm Blue Sea Capital is participating as a minority partner. It typically invests in lower middle market companies valued up to $200 million.

DDS sells custom dental prosthetic appliances to dental service organizations, mid-size group practices and sole practitioner dentists across the US. It is headquartered in Tampa, Florida and has additional distribution facilities in California and Texas.

CITIC is investing through its third international fund, where the typical strategy is to acquire Western companies that are underachieving or underpenetrated in China and help them realize the potential. According to a source familiar with the transaction, DDS already sells into China and the company is expected to tap into the country's fast-growing dental market.

Chinese private equity firms are increasingly interested in acquiring assets in the US and Europe that have a China angle. However, few transactions have actually closed. Industry participants blame a lack of experience doing deals in the US, the competitive nature of most investment opportunities and sellers who are wary of dealing with Chinese buyers.

CITIC is the exception, having completed its first US investment in 2005, alongside Harbour Group. The target company, lubricants manufacturer Lincoln Industrial, saw its China sales rise from $1 million a year to $1 million a month. The business was sold to a strategic investor in 2010.

More recently, the private equity firm teamed up with Windjammer Capital to buy Engineered Controls International (ECI), which produces valves used in gas transportation, and partnered Crestview Partners in the acquisition of displacement pump manufacturer Stackpole International.

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• Topics
• Buyouts
• North America
• Greater China
• Healthcare
• healthcare
• China
• USA
• buyout
• CITIC Capital