China's CITIC Capital buys U.S. dental firm DDS LAB

HONG KONG Wed Jul 2, 2014 11:59am EDT

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HONG KONG (Reuters) - CITIC Capital Partners, the private equity arm of CITIC Capital Holdings Ltd, said on Wednesday it had acquired U.S. dental company DDS LAB LLC on undisclosed terms.

DDS, established in 2005 and headquartered in Tampa, Florida, is a dental laboratory that sells custom dental products to dental service organizations, mid-size group practices and sole practitioner dentists across the United States. 

"The U.S. dental lab sector is (worth) around $8 billion. Consolidation is widely expected given the current highly fragmented nature of the industry," said Cindy Tam, a CITIC Capital executive, in an emailed response to Reuters questions.

Tam declined comment on the value of the acquisition but said Hong Kong-based CITIC Capital's preferred deal size is between $30 million to $50 million.

Hong Kong-based CITIC Capital, which manages more than $2.6 billion in committed capital, is one of the most active China-based private equity firms buying assets overseas.

The firm has also been involved in two large consortium buyouts of U.S. listed China companies, the purchase for around $900 million of AsiaInfo-Linkage Inc and the $3.7 billion buyout of Focus Media Holding Ltd.

CITIC Capital partnered with California-based buyout firm Blue Sea Capital and DDS management to acquire the business. 

Moelis & Co was financial advisor to DDS. 

(Reporting by Stephen Aldred; Editing by David Holmes)

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