Canadian Dental Labs partners with Hallmark Dental, expanding footprint into Atlantic Canada

CALGARY, AB, July 11, 2023 /CNW/ - Corpus Partners, via its Canadian Dental Laboratories Limited Partnership ("Canadian Dental Labs"), is pleased to announce the closing of the acquisition of a significant interest in Hallmark Dental Laboratory ("Hallmark"). Founded in 1981 and based in Halifax, Hallmark is the largest dental laboratory in Atlantic Canada serving >500 dentists with a long-standing reputation of technical leadership, customer service and education. Hallmark provides Canadian Dental Labs with a leading market position in its third major Canadian market, alongside Protec Dental (British Columbia) and Shaw Lab Group (Ontario) and represents a critical milestone in the journey towards building a Canada wide, premium dental laboratory platform.

For growth oriented, premium dental laboratories, Corpus Partners believes the transaction further solidifies Canadian Dental Labs as a partner of choice.

Canadian Dental Labs Partners with Hallmark Dental, Atlantic Canada's Largest Dental Laboratory

Post this

For investors, Corpus Partners believes that Canadian Dental Labs offers a pure-play exposure to non-cyclical after-inflation growth (2.4% ⁽¹⁾ pa driven by inelastic, resilient, and lower volatility operating results and inflationary hedging capabilities), population growth, aging demographics, technology advancements and fragmentation drivers. Corpus Partners believes the result will continue to be consistent core earnings plus the opportunity to generate resilient, low volatility growth and capital appreciation.  BMO Capital Partners ("BMOCP") was an early co-investor and supporter of the thesis. 

Transaction Commentary:

"We are very excited to be joining Canadian Dental Labs.  As Atlantic Canada's market leader, Hallmark Dental recognized that Canadian Dental Labs was the ideal strategic partner to provide the opportunity to not only continue but build on our existing legacy of outstanding customer service, continuous improvement, and technology leaders for the last 42 years. We feel a strong alignment with Canadian Dental Labs commitment to innovation, high-quality products and services and a people first culture.  It is truly an honour to have Shaw and Protec as partners with Hallmark under the Canadian Dental Labs umbrella. This partnership helps solidify Canadian Dental Labs as Canada's leading dental lab group and we are very excited for the value it will add for our clients and patients. The entire management team and I are enthusiastic for the next stage of the company, and a continued growth path for the future" Christian Hall, President & CEO of Hallmark.

"I am thrilled to partner with Hallmark, as their culture, geographical location, exceptional customer service, and strong reputation align seamlessly with our mission, vision, and values. Collaborating with Christian Hall and the incredible Hallmark team fills me with genuine excitement. Together, we are poised to make a profound impact in our industry.", Ali Rezaei, President & CEO, Canadian Dental Labs.

"Since the inception of Canadian Dental Labs, we have evaluated many growth opportunities, but few exist like Hallmark that provide the scale and regional market share we covet combined with a consistent commitment to technology, culture and education that are key differentiating pillars of Canadian Dental Labs. As we complete the integration of the Hallmark team into Canadian Dental Labs, we continue to actively seek similar partnership opportunities in major markets to add additional depth and breath to Canada's leading premium dental laboratory platform", Chad Dundas – SVP M&A and Capital Markets, Corpus Partners.

"We are proud to partner with the team at Equicapita to provide strategic advisory services and financial support across its targeted, investment verticals. As a lender to the Equicapita platform for over a decade, we are excited to see the potential development under this new platform. Their proven track record and growth trajectory represent a compelling opportunity for ATB Financial to support a leading Alberta based alternative investment management firm", Trina Holland, Associate Vice President, Diversified Industries & Energy Services, ATB Financial.

Canadian Dental Labs at a Glance:

• Leadership: Ali Rezaei, President & CEO
• Employees: > 450
• Dental professionals served: > 4,500
• Western Canada Operations: Protec Dental (Vancouver)
• Ontario Operations: Shaw Lab Group (Toronto, London, Kingston, and Ottawa)
• Atlantic Canada Operations: Hallmark Dental (Halifax, NS and St. John's, NL)
• Banking Partner: ATB Financial
• Investment Partner: BMO Capital Partners
• Website: https://canadiandentallabs.ca/

About Corpus Partners: Corpus Partners is the healthcare operating group of Equicapita an SME roll-up fund launched in 2013.  Equicapita focusses on three industry verticals and has an AUM of over $300M:

i.	Healthcare (Corpus Partners).
ii.	Royalties (Averine Partners); and
iii.	Light industrial (Perceptos Partners).

About BMOCP: BMOCP is a private equity arm of Bank of Montreal specializing in junior capital, mezzanine financing, subordinated debt, and equity capital in mid-market companies. The firm invests in buyouts, management buyouts, leveraged buyout, minority buyout, management buy-ins, restructurings, joint venture and strategic alliances, expansion capital, capital expenditures, growth capital, recapitalizations, and go-private transactions.

About ATB Financial: With $57.5 billion in assets, ATB Financial is a leading financial institution that started in Alberta with the focus of putting people first. Our success comes from our more than 5,000 team members who love to deliver exceptional experiences to nearly 800,000 clients across our Personal and Business Banking, ATB Wealth Management and ATB Capital Markets businesses. ATB provides expert advice, services and products through our many branches and agencies, our 24-hour Client Care Centre, four entrepreneur centres and our digital banking options. ATB powers possibilities for our clients, communities and beyond.

Forward-looking information

This news release may contain certain information that is forward-looking, and, by its nature, such forward-looking information is subject to important risks and uncertainties. The words "anticipate," "expect," "may," "should," "project," "will" or other similar words are used to identify such forward-looking information. Those forward-looking statements herein made reflect Canadian Dental Labs' beliefs and assumptions based on information available at the time the statements were made. Actual results or events may differ from those anticipated or predicted in these forward-looking statements, and the differences may be material. Factors which could cause actual results or events to differ materially from current expectations include, but are not limited to: risks associated with the ownership and operation of businesses; fluctuations in interest rates; financing and debt requirements; employment retention; general economic conditions; supply and demand for businesses; competition for available businesses; litigation and legal matters; changes in legislation and the regulatory environment; international trade and global political conditions; the impacts of the COVID-19 pandemic; and security threats to our physical assets and IT systems. Readers are cautioned not to place undue reliance on any forward-looking information contained in this news release. The forward-looking statements contained in this press release are made as of the date hereof and Canadian Dental Labs undertake no obligation to update publicly or revise any forward-looking statements or information, whether as a result of new information, future events or otherwise, unless so required by applicable securities laws.

SOURCE Corpus Partners

Chad Dundas, SVP M&A and Capital Markets, Tel: [phone], Email: [email protected]