Global investment firm KKR is in discussions with US fund Comvest Investment Partners, to acquire Leixir Dental Laboratory Group, a US-based dental solutions provider, at a valuation of $200-$250 million, said multiple people aware of the development.
Founded in 2013 by Harmeetpal Singh Bindra and Mangesh Sholapure, Leixir caters to both independent dentists and dental service organisations, as well as technology and distribution firms. It operates a network of full-service dental laboratories offering products such as crowns and bridges, implants, surgical guides, dentures, and intraoral scanners.
The company runs six dental laboratories in the US in addition to a digital design and manufacturing facility in Gurugram. Its top competitors include Straumann Group, Dentsply Sirona and Acteon Group, according to Tracxn.
Leixir records earnings before interest, tax, depreciation and amortisation (Ebitda) of about $20 million last year, the people said, adding Deloitte is advising Comvest on the sale process.
In 2021, Comvest acquired Leixir, which was earlier backed by institutional investors such as IvyCap Ventures, GSK Ventures and Stakeboat Capital. IvyCap was the first institutional investor in Leixir in 2015, followed by GSK Ventures, owned by Serial healthcare entrepreneur GSK Velu, in 2016.
Currently, Comvest Investment Partners V LP holds a 54.3% stake in Leixir while Comvest Investment Partners V-A LP owns 45.5%.
Comvest and KKR did not respond to email queries.
Leixir has acquired several leading labs in several markets in North America including Knight Dental Group in 2014. It runs the largest dental lab in India and is one of the largest dental labs in the US.
KKR has been an active investor in the Indian healthcare sector, where it made one of its biggest paydays in India by exiting Max Healthcare. KKR, which took a majority stake in Max Healthcare, along with Mumbai-based Radiant Life Care in 2018, made a full exit in 2023 with a fivefold return.
To repeat its success in healthcare, KKR is in the process of setting up a hospital platform through multiple buyouts. Last year, the US fund acquired Kerala-based Baby Memorial Hospital from its Asia fund V.
In a similar line, investing $200 million in Gland Pharma in 2013, KKR made a return of more than three times and an internal rate of return (IRR) of nearly 30%. Gland Pharma was sold to Fosun Pharma. KKR also acquired Healthium, a leading Indian medical devices company. In May 2024, KKR acquired Infinx, a tech-enabled healthcare revenue solutions provider.
The global dental market is projected to reach $90 billion in the next decade, as per reports, which valued the market size at about $50 billion as of 2023.
Source: Economic Times