CITIC seals US dental deal

The US arm of CITIC Capital Partners has led the acquisition of DDS Lab.

CITIC Capital Partners has acquired US-based dental laboratory DDS Lab for an undisclosed amount, along with Blue Sea Capital and company management, according to a statement.

The company sells custom dental prosthetic appliances to dental service organisations, mid-size group practices and individual practitioner dentists across the US and is headquartered in Florida.

“This partnership represents an important milestone in DDS’ future growth plan,” said Amy Ceresa, president of DDS LAB. “We are excited to be partnering with CITIC Capital Partners and Blue Sea Capital, who bring global capabilities, financial resources and industry expertise that will help us continue to expand the business and better serve our customers.”

Hanxi Zhao, managing director of CITIC, added, “We are delighted to partner with DDS’ talented management team and Blue Sea Capital to deliver best-in-class products and services to its existing and future customers, and to capitalise upon the increasing trend toward better dental care globally. Amy and her team have done a tremendous job in growing DDS and we are committed to assisting DDS in accelerating its next stage of growth.”

The acquisition comes from CITIC’s third international private equity fund, which invests in companies outside of China with a view to leverage the Chinese market in some way to improve the business. The vehicle closed on $562 million in mid-2011 and is its first to include Europe in its mandate.

In October last year, CITIC teamed with New York-based private equity firm Crestview Partners in a buyout of Stackpole International worth around $512 million, Private Equity International reported earlier.

CITIC Capital Partners is a Chinese private equity fund with both China-focused vehicles and international funds. In China, the firm is currently investing from its second China buyout fund, a $925 million vehicle with a 2009 vintage, according to PEI's Research & Analytics division.