New York-based private equity firm Sentinel Capital Partners has sold its stake in a Church’s Chicken franchise business and purchased a Minneapolis, Minnesota-based dental business. Details of the transactions were not disclosed.
According to John McCormack, a co-founder and senior managing partner at Sentinel, the franchises had a negative cash flow in 1999, prompting the new owners to make improvements to the restaurants and staff with the help of Khan, who had worked his way up through the Church’s chain.
The firm also announced their investment in dental clinic operator MetroDentalcare, which operates 23 offices in the Twin Cities-area. Sentinel previously invested in Castle Dental Centers, a similar platform that Sentinel sold to Bright Now! Dental earlier this year.
James Cody, a principal with the firm, said Sentinel was interested in the dental industry, pointing to an aging population that is increasingly keeping its natural teeth, as well as the increase in cosmetic dental procedures.
“It has shown the ability to grow organically,” Cody said, adding that the business would also make opportunistic acquisitions.
David Lobel, founder and managing partner at Sentinel, said that the MetroDentalcare is the third deal the firm has done in Minnesota in the last five years. The clinics had previously been owned by an insurance company.
MetroDentalcare is the first investment made from Sentinel Capital Partners III, which closed on $319 million in April.