In DSO + DPMs

Western Dental reportedly looking for financial investors

Orange, Calif.-based Western Dental & Orthodontics is reportedly up for auction, sources close to the matter told PEHub.

Goldman Sachs and Deutsche Bank are advising the sales process, which is in the early stages. People close to the matter said management has started giving presentations.

New Mountain first invested in Western Dental in 2012. While financial terms of the investment weren't disclosed, a Moody's report suggests the deal was valued at around $550 million, according to PEHub.

The dental service organization could be sold for billions of dollars. One source told PEHub that its EBITDA was estimated at $120 million.

Western Dental has seen revenue grow year over year. What started as a single office in Los Angeles has grown to support more than 320 offices throughout the country. However, one thing that could hold the DSO back is that a large portion of its revenue comes from Medicaid patients.

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