L Catterton completed a strategic investment into dental company OdontoCompany, which is a leading and growth oriented dental clinic franchisor in Brazil. Financial terms of the transaction were undisclosed.
(Press Release) OdontoCompany (the “Company”), a leading and growth-oriented dental clinic franchisor in Brazil, today announced that it has received a significant strategic investment from the Latin America fund of L Catterton, the largest and most global consumer-focused private equity firm. L Catterton will partner with the Company’s Founder and Chief Executive Officer, Dr. Paulo Zahr, and existing shareholder, José Carlos Semenzato, who previously partnered with L Catterton on its investment in Espaçolaser and was instrumental in growing the franchise business, to accelerate OdontoCompany’s growth and expansion. Terms of the transaction were not disclosed.
Founded in 1990, OdontoCompany is expected to have 700 active dental clinics throughout Brazil by the end of 2019 offering orthodontics, dentistry, aesthetics, endodontics, implants, and other services. Utilizing the latest technology and prioritizing innovation and quality, OdontoCompany is focused on enhancing its offerings and making dental care more accessible to all Brazilians. In early 2019, OdontoCompany acquired a significant stake in Oral Sin, a franchisor of dental clinics focused on implants with more than 160 clinics, marking a wave of consolidation in the dental clinic industry. Today, OdontoCompany’s franchises operate in all 27 Brazilian states, meeting the dental needs of more than 800,000 patients each year.
“This investment is a testament to the tremendous efforts and hard work of the OdontoCompany team and our franchisee family to bring dental care to patients across the country, and it demonstrates the high growth potential of our model,” said Dr. Zahr. “L Catterton has a deep understanding of the Latin American consumer and an impressive track record of building leading consumer health companies, as well as experience growing dental brands in North America and Europe. With L Catterton’s partnership and the continued support of Semenzato, we will continue expanding, both organically and though strategic acquisitions, while setting the standard of dental care and amplifying our position as pioneers in the market.”
“OdontoCompany has experienced impressive growth over the past nearly 30 years and is ideally positioned to capitalize on the favorable dental care category dynamics in Brazil,” said Julio Babecki, Managing Partner, L Catterton Latin America. “Together with Paulo and Semenzato, we are confident OdontoCompany will continue to expand its network of odontology clinics in Brazil, while continuously striving to excel in the quality of services to its patients. We look forward to supporting franchisees and strengthening the Company’s growing network with the implementation of best practices, extensive benchmarking, new training, and an enhanced IT infrastructure.”
“We see significant potential in OdontoCompany as a curated experience that offers patients best-in-class dentists, innovative technology, and unmatched service at affordable prices,” said Farah Khan, Partner, L Catterton Latin America. “OdontoCompany’s founder and management team have done a tremendous job gaining relevance in a growing market and we are excited to support their vision of making dental care better and more accessible to all Brazilians.”
Mr. Semenzato, Founder and Chairman of The Semenzato Group, a prominent franchising partner in Brazil, joined OdontoCompany in 2011 when the Company had only three clinics. Leveraging his deep expertise in franchising, OdontoCompany grew sales at a 45% CAGR over the past three years.
“As the population continues to prioritize health and wellness, the Brazilian dental industry has experienced remarkable growth and OdontoCompany has done a terrific job of building a network to meet the rising demand,” added Mr. Semenzato. “I am pleased to work once again with the L Catterton team to support management in expanding and deepening OdontoCompany’s market presence, while leveraging L Catterton’s operational expertise and resources to elevate the experience of our franchisees.”
L Catterton has deep experience investing in consumer healthcare brands, including investments in CareDent, dentalcorp, Laboratorio da Mulher, FEMME, Pain Doctor, and PatientPoint. In addition to FEMME, other L Catterton Latin America investments include Bodytech (Colombia), Cholula, Espaçolaser, Grupo MYT, Grupo St. Marche, Luigi Bosca, Susana Balbo Wines, and Rapsodia.
XP Investimentos advised OdontoCompany on this transaction.
OdontoCompany, founded in 1990 by Paulo Zahr, is the leading dental clinic franchisor in Brazil with over 700 clinics and a differentiated proposition of a comprehensive range of dental services with affordable prices and financing terms. The Company’s services include dentistry, aesthetics, endodontincs, and implants.
About L Catterton
With approximately $20 billion of equity capital across seven fund strategies in 17 offices globally, L Catterton is the largest consumer-focused private equity firm in the world. L Catterton’s team of more than 190 investment and operating professionals partners with management teams around the world to implement strategic plans to foster growth, leveraging deep category insight, operational excellence, and a broad thought partnership network. Since 1989, the firm has made over 200 investments in leading consumer brands. L Catterton was formed through the partnership of Catterton, LVMH, and Groupe Arnault. For more information about L Catterton, please visit www.lcatterton.com.
About The Semenzato Group
The Semenzato Group is a leading investment firm in the Brazilian franchise