MB2 Dental Announces Recapitalization Event with New Investor Warburg Pincus, Solidifying Company Growth Milestone

CARROLLTON, Texas – November 12, 2024 – MB2 Dental (“MB2” or the “Company”), the first and largest dental partnership organizations (DPO) nationwide, today announced a strategic investment from Warburg Pincus.

Transaction Highlights

• $525 million investment from one of the world’s leading private equity firms
• Offers liquidity options to the company’s doctor partners at a total enterprise value in excess of $3.5 billion
• Marks MB2 Dental’s third recapitalization in the past seven years, each providing liquidity to all shareholders and affirming the company’s unique doctor-led partnership model
• Charlesbank Capital Partners will continue its longstanding partnership with the company and is excited to support MB2’s next growth phase

Growth
This transformative transaction is a testament to MB2 Dental’s sustained growth and differentiated performance. Since Charlesbank’s initial investment in 2021, MB2 has added over 450 new partnerships, and the Company’s revenue and EBITDA have each grown by more than 30% per year.

The recapitalization reflects Warburg Pincus’s conviction in MB2 Dental’s growth opportunities. The Company continues to revolutionize the dental industry by empowering dentists to retain clinical autonomy while benefiting from a large organization’s operational and financial support. Proceeds from the transaction will directly benefit over 700 doctor partners and accelerate investments in the value-added services that MB2’s doctor partners can leverage to grow their practices and realize substantial value creation.

Dr. Chris Steven Villanueva, founder and CEO of MB2 Dental, stated, “This is a significant achievement for MB2 Dental and our doctor partners. The ongoing support from Charlesbank, along with another top-tier investor in Warburg Pincus, reinforces our success in establishing a partnership model that meets the needs of our dentists. This new investment will enable our doctors to maintain uncompromising exceptional care and drive our continued success. While this recapitalization is a major milestone, it is just the beginning. MB2 is well-positioned to keep setting new standards for how large dental platforms should perform.”

“Warburg Pincus’ Healthcare and Capital Solutions teams are excited to partner with MB2 on its innovative approach to the dental services industry. MB2's commitment to empowering dentists and preserving the integrity of patient care, while enabling efficient practice management, makes them an exemplary partner. We look forward to collaborating with MB2’s management and doctor partners to support their continued success,” said Adam Krainson, Managing Director, Warburg Pincus, and José Arredondo, Principal, Warburg Pincus.

The new partnership with Warburg Pincus positions MB2 Dental to continue expanding its network of doctor partners. It provides greater opportunities for dentists to join an organization that fosters independence, collaboration, and growth.

“We have been thoroughly impressed by the substantial growth MB2 has driven since we first partnered with the Company in 2021, and today’s announcement underscores the success Dr. Villanueva and his exceptional team have achieved in recent years. We look forward to partnering closely with Warburg Pincus to further enable the Company to reach its growth potential, and ultimately support MB2’s network of talented doctor partners providing care to patients across the country,” added Brandon White, Managing Director at Charlesbank.

The Company is excited to further its partnership with existing investors Charlesbank and KKR, as well as with new strategic investor Warburg Pincus. Moelis & Company continues to serve as financial advisor to MB2 Dental, and Houlihan Lokey served as the financial advisor to Warburg Pincus. Kirkland & Ellis served as legal advisor to the Company, and Wachtell, Lipton, Rosen & Katz served as legal advisor to Warburg Pincus.