Avista Capital Partners, a prominent New York-based private equity firm exclusively focused on healthcare investments, has announced the acquisition of Solmetex, LLC, a leading provider of amalgam separators and dental waste compliance solutions in the United States and Canada. The definitive agreement, revealed on December 17, 2020, marks a significant addition to Avista’s growing portfolio of healthcare businesses. While the financial terms of the deal remain undisclosed, this strategic move underscores Avista Capital Partners’ commitment to investing in market-leading companies with strong growth prospects within the healthcare sector.
Solmetex has established itself over 25 years as an innovator in dental waste management, primarily assisting dental practices in navigating the complex and evolving regulatory landscape. This acquisition by Avista Capital Partners will empower Solmetex to further enhance its mission of delivering environmentally responsible and cutting-edge dental waste management technologies and programs. This partnership is expected to fuel further investment into Solmetex’s product development and service offerings, while also accelerating its expansion into global markets.
Sriram Venkataraman, Partner at Avista Capital Partners, highlighted the strategic rationale behind the acquisition. “Our investment in Solmetex represents an attractive opportunity to acquire the clear market leader in an indispensable category within the dental industry,” Venkataraman stated. He further emphasized Solmetex’s strong market position, characterized by “deep customer relationships, strong recurring revenues, a durable portfolio, and a new product pipeline,” expressing confidence in the company’s potential for “robust domestic and international expansion.” This acquisition aligns perfectly with Avista Capital Partners’ investment strategy of targeting companies with solid fundamentals and significant growth potential in the healthcare space.
Nick Mozzicato, CEO of Solmetex, also expressed enthusiasm about the new partnership. “Our mission at Solmetex has always been to help dental practices achieve compliance in mercury removal and environmental waste reduction, for the health and safety of all patients,” Mozzicato explained. He conveyed honor in serving “thousands of dental offices and the nation’s leading dental distributors” and expressed excitement about collaborating with Avista. Mozzicato affirmed that Avista Capital Partners recognizes Solmetex’s value proposition and possesses “a demonstrated track record of partnering with healthcare companies,” suggesting a strong alignment of vision and strategic goals.
Steve Schiess, Operating Executive at Avista and former CEO of Zest Dental Solutions, echoed this positive outlook. “We can’t wait to begin our partnership with Solmetex and its team of exceptionally experienced and dedicated professionals,” Schiess remarked. He confirmed Avista Capital Partners’ commitment to providing “the requisite financial and operational assistance to accelerate Solmetex’s market leadership, in line with the Company’s current growth initiatives.” This operational expertise, combined with Avista Capital Partners’ financial backing, is expected to be instrumental in driving Solmetex’s future success.
Reflecting on their partnership with Solmetex, Marko Kivisto and Mark Verdi, Partners and Co-Founders of AVALT, expressed pride in Solmetex’s growth under their ownership. They acknowledged the company’s “significant growth” and affirmed that Solmetex is “very well positioned for continued success,” suggesting a smooth transition and a strong foundation for future expansion under Avista Capital Partners’ guidance. Similarly, Jimmy Rich, Managing Director of Gemini Investors, noted the “rewarding” experience of witnessing Solmetex’s management team execute their growth strategy. He believes that in Avista, “the management team has found an experienced and value-added partner to assist them in continuing Solmetex’s strong growth trajectory in the years ahead.”
The transaction involved Piper Sandler serving as financial advisor to Solmetex, with legal counsel from Ropes & Gray LLP and accounting advice from Alvarez & Marsal. Avista Capital Partners received legal counsel from Kirkland & Ellis LLP.
About Avista Capital Partners
Avista Capital Partners, established in 2005, is a leading private equity firm headquartered in New York City. With over $6 billion invested in more than 35 healthcare businesses globally, Avista Capital Partners focuses exclusively on the healthcare sector. The firm strategically partners with growth-oriented businesses demonstrating robust management teams, consistent cash flows, and strong growth potential. Avista Capital Partners targets investments across various healthcare sub-sectors, including medical devices and technologies, pharmaceuticals, outsourced pharmaceutical services, distribution, and consumer-driven healthcare. A key element of Avista Capital Partners’ approach is the integration of Operating Executives and Advisors, who provide strategic insights and operational oversight to drive growth and create long-term value for all stakeholders. More information about Avista Capital Partners can be found at www.avistacap.com.
Conclusion
The acquisition of Solmetex by Avista Capital Partners represents a strategic move for both organizations. For Avista Capital Partners, it signifies a continued expansion and deepening of their investment in the healthcare sector, specifically targeting market-leading companies with strong growth fundamentals. For Solmetex, this acquisition provides the resources and expertise to further solidify its market leadership in dental waste management solutions, accelerate product innovation, and expand its global footprint. This partnership is poised to drive continued success and innovation in the dental waste compliance industry.
