CenterGate backs Canadian Dental Labs in healthcare services deal

CenterGate Capital has made an investment in Canadian Dental Labs, a Canadian operator of dental laboratories, according to PE Hub. The company manages 11 laboratories across Canada and produces dental prosthetics and orthodontic appliances.

PE Hub reported that Canadian Dental Labs, known as CDL, develops fixed and removable prosthetics as well as orthodontic appliances. The investment places private equity capital behind a healthcare manufacturing and services business that supplies dental practices and related providers.

Use of capital

According to PE Hub, CDL plans to use the CenterGate investment to add staff and technology across its organization. The company also intends to support its existing laboratory network.

For a dental laboratory group, capital can be deployed across production capacity, equipment, digital workflow tools and operational support. PE Hub did not provide further detail in the publicly available portion of its report on the specific technologies CDL intends to add.

Business profile

CDL’s network spans 11 laboratories in Canada, PE Hub reported. Its products include fixed prosthetics, removable prosthetics and orthodontic appliances, categories that serve different clinical needs in restorative and orthodontic dentistry.

Fixed prosthetics are dental restorations designed to remain in place, while removable prosthetics are made to be taken out by the patient. Orthodontic appliances are used in treatment plans involving tooth movement, alignment or retention. PE Hub identified CDL as a manufacturer in these areas.

The reported transaction adds to private equity activity in healthcare services and specialty manufacturing, where investors often seek businesses with distributed operations and recurring demand from professional end markets. PE Hub did not disclose financial terms in the accessible details of its report.

This story draws on original reporting from PE Hub.