GENTLE DENTAL: Management Firm Procures 11 Offices
Gentle Dental Services Corp. yesterday announced it acquired 11 new offices as part of its ongoing expansion plan. The move will boost the El Segundo-based dental management company's influence in Southern California by adding six offices to the 12 it already manages in the area. The five remaining offices are in the Las Vegas area. The acquisitions come on the heels of the management firm's agreement to merge with Dental Care Alliance of Sarasota, FL, in an $80 million stock deal. Although negotiations wrapped up in October, the merger is not expected to close until sometime within the next 30 days. The new company, as yet unnamed, will operate in 11 states, manage 180 offices and pull in patient revenues of more than $200 million. The Los Angeles Times reports that "[a]nalysts were positive about the acquisitions ... in light of the pending merger." Roxanne Cheng of Wedbush Morgan Securities in Los Angeles said, "The recent acquisitions are going to be important because you need some size. There is consolidation among dental practices. You need to establish more of a presence in existing markets" (Mehta, 1/27).This is part of the California Healthline Daily Edition, a summary of health policy coverage from major news organizations. Sign up for an email subscription.