Carestream Dental Secures $525 Million Investment to Fuel Growth in Oral Healthcare
Carestream Dental, a global leader in digital transformation for the oral healthcare industry, announced the securing of a significant investment as part of a recapitalization. This strategic move will fuel the company's continued innovation agenda and drive its growth trajectory. The investment, facilitated by raising over $525 million in new capital, marks a significant milestone in Carestream Dental's journey to shape the future of oral healthcare.
Driving Innovation and Expansion
The recapitalization is led by General Atlantic Credit's Atlantic Park fund, securing a six-year first lien term loan. This transaction establishes an equity partnership comprising GA Credit, Canyon Partners, and several other investors. Clayton, Dubilier & Rice, a previous investor, will continue to hold a minority stake.
The proceeds from the transaction will be allocated to strategically enhance Carestream Dental's financial position. This includes a significant reduction in debt, a meaningful extension of maturities, and providing ample flexibility for continued investment in tools and technology. This financial flexibility will enable the company to pursue organic and inorganic growth strategies, expanding its reach and impact in the global oral healthcare market.
The Future of Oral Healthcare
Carestream Dental, formed in 2017, has established itself as a pioneer in digital dentistry, driven by a mission to transform the industry, simplify technology, and improve patient care. Serving over one million users across 100 countries, the company offers a comprehensive suite of solutions, including:
- Industry-leading oral healthcare devices
- Market-leading clinical software and services
- Best-in-class practice management software and services
The company's dedication to innovation has led to the expansion of its product and solution portfolio, including the launch of a new cone beam computed topography (CBCT) system and the significant expansion of its Sensei Cloud practice management software for specialty and enterprise customers. Carestream Dental has also forged strategic partnerships to provide a seamless and integrated workflow experience for its customers.
Oral Healthcare Innovation Hub
Carestream Dental is not only investing in its technology and infrastructure, but also in the future of the oral healthcare industry. The company has launched its Oral Healthcare Innovation Hub (OHIH), an incubator dedicated to revolutionizing the practice of dentistry. OHIH will unveil Oral Healthcare Practice 2040 at the International Dental Show (IDS) in March 2025 in Cologne, Germany, showcasing the company's vision for the future of oral healthcare.
This commitment to innovation, coupled with a strengthened financial position, positions Carestream Dental to capitalize on the growing global demand for digitally enabled dental solutions. This shift towards digital technology is driven by a growing awareness of the benefits of advanced technology for improving patient care, increasing practice efficiency, and enhancing patient experiences.
A Strategic Partnership
Matthew Bonanno, Managing Director at GA Credit, highlights the strategic nature of the partnership with Carestream Dental. He emphasizes the company's proven track record of delivering innovative solutions to its global customer base. This investment, he believes, will enable Carestream Dental to leverage the growth opportunities in the global marketplace by continuing to invest in innovation and strategic partnerships. Bonanno is confident that Carestream Dental is poised for significant growth across multiple markets as the standard of care continues to migrate towards digital technology.
Transforming the Future
Carestream Dental's commitment to innovation and digital transformation, coupled with the strategic investment from General Atlantic Credit and its partners, positions the company for continued growth and success. As the oral healthcare industry embraces digital technology, Carestream Dental is at the forefront, poised to shape the future of the industry and improve patient care globally. The company's vision for Oral Healthcare Practice 2040, to be unveiled at the International Dental Show in 2025, provides a glimpse into the future of dentistry, a future where technology empowers dental professionals to deliver the highest quality care and improve patient outcomes.
Key Quotes
Lisa Ashby, Chief Executive Officer of Carestream Dental, expresses her enthusiasm for the partnership: “We are thrilled to partner with GA Credit, Canyon Partners and our broader investor base as we work to build the future of oral healthcare. This transaction significantly strengthens Carestream Dental’s financial position, providing a stronger platform for us to continue investing in our business and customers.”
Matthew Bonanno, Managing Director at GA Credit, adds: “Carestream Dental has a demonstrated track record of successfully delivering differentiated products and comprehensive solutions to its global customer base. We believe this recapitalization positions Carestream Dental to take advantage of strong secular tailwinds in the global marketplace by continuing to invest in innovation and strategic partnerships. Further, we believe Carestream Dental is poised for meaningful growth across multiple markets as the standard of care continues to migrate to the digitally enabled dental market. We look forward to leveraging our healthcare and software expertise to support Lisa and the team in achieving the Company’s growth objectives.”
About Carestream Dental
Carestream Dental is a global leader in digital solutions for the oral healthcare industry, building upon over 125 years of experience. The company is committed to transforming dentistry, simplifying technology, and changing lives. Carestream Dental offers three brand portfolios:
- The Carestream Dental brand portfolio, encompassing world-class oral healthcare devices
- The Swissmeda brand portfolio, providing market-leading clinical software and services
- The Sensei brand portfolio, offering best-in-class practice management software and services
These solutions connect industry partners, laboratories, and payers to optimize oral healthcare providers' workflows, enhancing efficiency and practice growth.
About General Atlantic Credit
General Atlantic Credit (GA Credit) is the dedicated credit investment platform within General Atlantic, a leading global growth investor. GA Credit leverages a proven track record of strategic credit partnerships across market cycles and capital structures, complemented by General Atlantic's extensive domain expertise and company-building capabilities spanning over 44 years. GA Credit's Atlantic Park strategy provides flexible capital to high-quality companies seeking a strategic partner at various stages of the corporate and economic lifecycle.
General Atlantic, with approximately $83 billion in assets under management as of June 30, 2024, is committed to providing customized capital solutions tailored to a company's specific needs.
