DLJ acquires cosmetic dental company

DLJ Merchant Banking Partners has added the first dental company to its healthcare portfolio with the acquisition of Den-Mat Holdings.

Credit Suisse affiliate DLJ Merchant Banking Partners has acquired a controlling interest in cosmetic dental product manufacturer Den-Mat Holdings for an undisclosed amount.

Den-Mat produces a line of dental products including curing lights, bonding agents, crowns bridges and whitening procedures, in addition to its flagship product, LUMINEERS, a porcelain veneer.

DLJ has made several changes to the senior management of Den-Mat. Nicholas Teti, former chief executive of skincare-focussed biotech company Isolagen and Inamed, a maker of cosmetic enhancement products, will be chief executive officer. Adel Michael, former chief financial officer and vice chairman of breast implant maker Mentor Corporation, will be chief operating officer.

DLJ will seek to expand Den-Mat’s product line and geographic footprint, as well as build out the company’s infrastructure. In addition, Den-Mat will form an advisory board to “further strengthen its relationships with key opinion leaders, dental schools and other dental associations”, DLJ said in a statement.

Several private equity firms have earned strong returns from dental deals. Last March, FdG Associates earned 8.1 times its initial investment with the $110 million sale of dental benefits administrator DentaQuest. In September 2007, Sentinel Capital Partners earned a 5 times return on the sale of Metro Dentalcare.

Den-Mat is DLJ’s first investment in the dental sector, although the firm has invested in several pharmaceutical companies, including BioPartners, NextPharma and Warner Chilcott.