Sheridan Capital Partners has completed a majority recapitalisation of existing portfolio company Smile Doctors. Through the recapitalisation, Linden Capital is joining as lead investor while Sheridan and management are both rolling over equity.
“Working with the entire Smile Doctors team to build the national leader in orthodontics has been a true pleasure,” says Jonathan Lewis, Managing Partner at Sheridan Capital Partners. “Together we have expanded the business from its 12 clinics in Texas and Georgia to over 90 clinics across 11 states. This recapitalisation validates the exceptional growth of the business during our ownership, and our continued investment in the Company will allow us to further expand the Smile Doctors’ brand, culture, patient experience, and clinical excellence to more communities across the US.”
Sean Dempsey, Managing Director at Sheridan, says: “In Smile Doctors, we successfully found the rare combination of passionate, dedicated founders and team members and an undeniable market opportunity. We are proud to have contributed to the success achieved so far and remain extremely excited about the Company’s future.”
Scotte Hudsmith, CEO of Smile Doctors, adds: “Sheridan has been a supportive and highly-valued partner to our team over these past few years, and we are pleased they will continue to support us in this next phase. We are also excited to partner with Linden and look forward to collaborating with them as we continue to bring beautiful, confident smiles and genuine, unforgettable experiences to more and more patients nationwide.”
McGuire Woods LLP and Kirkland & Ellis LLP served as legal advisors to Sheridan and Linden, respectively. William Blair served as exclusive financial advisor to Smile Doctors. Houlihan Lokey served as exclusive financial advisor to Linden. Twin Brook Capital Partners led the debt syndication for the transaction, providing USD325 million in financing.
The recapitalisation was led by Lewis, Dempsey, Nicholas Rowland, and Jonathan Gavron at Sheridan Capital Partners. Terms of the transaction have not been disclosed.
