Florida State Congressman Michael Bileca drowning in dental companies. He’s a CPA, not a DMD!

What would a Florida State Representative have his name on so many dental companies? Congressman Bileca is on the following either as a member of the LLC, Executive of the Corporation or the Registered Agent. He’s also the treasurer of the Dental Group Practice Association, that nasty little group whose goal is convince Private Equity firms to invest their every last dollar in corporate dentistry as they have defined it.  (FFL seems to be a huge sucker for this one, or they run DGPA..hmmm)

Among the odd things on this list, is there are ONLY dental companies. Not, lawn care companies, not roofing companies, not your general smorgasbord of companies one would expect if he were just their “registered agent”.
Got a complaint about this; don’t write your state representative, he knows all about it.  Contact the Florida State Dental Board:
Department of Health Board of Dentistry
4052 Bald Cypress Way
Bin C-08
Tallahassee, FL 32399-3258
Phone: (850) 488-0595
Fax: (850) 921-5389

Four Winds Health, Midwest Dental, Kool Smiles Dental and Friedman Fleischer & Lowe (FFL)

From FFL website:
Four Winds Health, LLC was formed to build and manage a chain of high-end urgent care centers that offer walk-in, extended-hour access for non-life-threatening acute injuries and illnesses. Through its centers, Four Winds is focused on creating a superior patient experience through the delivery of convenient, comfortable, high-quality medical care.
Four Winds is headquartered in Atlanta, GA. The company was formed by the same management team which previously founded Kool Smiles, another FFL investment. FFL provided founding capital to Four Winds in 2011


Midwest Dental is a leading dental practice management company with over 75 clinics in six states. Midwest Dental clinics are typically located in suburban and rural areas, and the company has demonstrated an impressive track record of growth through acquisitions of independent dental clinics. The company provides the clinics with a full range of management, administrative and financial services, allowing clinical staff to allocate more of their time to patient care.
Midwest Dental is located in Mondovi, WI. FFL acquired the company in 2011 and plans to provide additional capital to support future acquisitions.
 

NCDR, LLC provides various non-clinical services to dental group practices, including providing dental facilities, support staff, and other business services. NCDR's principal [ONLY] client is Kool Smiles, a nationally-branded provider of dental care focused primarily on children enrolled in Medicaid and State Children's Health Insurance Programs. The limited access to care for children on Medicaid/SCHIP plans provides an attractive growth opportunity for Kool Smiles as it continues to expand offices with a mission to provide quality care to this underserved population.

The company is headquartered in Atlanta, GA. FFL invested in NCDR in 2004 to provide growth capital and liquidity to founders.

I think Kool Smiles Dental press releases about “new jobs” is very misleading

Over the past several days Kool Smiles Dental (NCDR, LLC) has published press releases about their expansion, growth and plans to hire from 80 to 100 jobs in various states. i.e. South Carolina to get 100 new jobs, Virginia blessed with 100, Indiana 88 new jobs.
Using buzz words and phrases such as “expansion”, “bright economic outlook” “provide jobs” leaves the reader feeling warm and fuzzy about Kool Smiles doesn’t it?  Heck they are providing dental treatment for underprivileged children and children whose parents have fallen on hard times due to the poor economy and bleak job outlook.  As the cherry on top they state they are providing jobs for states and local communities. 
FANTASTIC!
Shoot, they even have lawmakers commenting about the fabulous news:

Kool Smiles Dental owners purchased Midwest/Mountain Dental- April 2011

Mountain Dental and Midwest Dental operated by Dr. Jeff Moos is another dental chain owned by a Private Equity firm- the same one who owns Kool Smiles-Friedman, Fleischer & Lowe, out of San Francisco!  A “Mike Lindley” is on the board of Mountain Dental.
Friedman, Fleischer & Lowe, (FFL)the private investment firm who owns and operated NCDR, LLC – Kool Smiles Dental Centers purchased Midwest Dental from Cressley & Company April 2011.
Cressley & Co, along with CIT Group were leaders in the recapitalizaition of Midwest Dental in May 2007.  Cressley purchased MWD from Svoboda.

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Here is the story from “The Middle Market”
by Anthony Noto
April 7, 2011

San Francisco-based FFL is investing out of its 2007-vintage Friedman Fleischer & Lowe Capital Partners III fund, which targets companies with enterprise values within the $50 million to $500 million range.
Terms of the deal have not been disclosed. FFL is acquiring the Mondovi, Wisc.-based target out of Thoma Cressey Bravo Fund VIII LP.
Chicago-based Thoma Cressey led a recapitalization of Midwest Dental in May 2007 and purchased all of its interests from Svoboda Collins LLC. Terms were not disclosed.
Calls to Aaron Money, the FFL partner leading the latest acquisition, were not returned. A spokesperson at Midwest Dental could not be reached.
FFL already owns two companies in the dental space. Portfolio companies NCDR LLC and DPMS Inc. provide facilities and support staff to dental groups operating under the Kool Smiles brand, according to the PE shop’s website. FFL acquired Atlanta-based NCDR and San Ramon, Calif.-based DRMS in 2004 and 2006 respectively.
[ NCDR, LLC and DPMS, Inc were really just Kool Smiles whether it be Kool Smiles 2 or Kool Smiles 3 or whatever.  They merged a few months back and guess what, they are still NCDR, LLC - Kool Smiles]
Purchasing Midwest Dental would not serve as an add-on to NCDR or DRMS. 
Other midmarket PE firms have capitalized on M&A within the dental space as well. On Dec. 29, Sentinel Capital Partners sold Phoenix-based ReachOut Healthcare America Ltd., a provider of dental support service and care to underprivileged children, seniors, and military personnel. Terms were not disclosed.
A month earlier, dental services company Smile Brands Group Inc., backed by Freeman Spogli & Co., found a new private equity owner in Welsh, Carson, Anderson & Stowe. The price of that secondary buyout was not disclosed, but the Santa Ana, Calif. company said last April that it hoped to go public with an enterprise value of about $470 million.

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Here is the story from LBO Wire

Cressey & Co. Passing Midwest Dental To Friedman Fleische Lowe
Shasha Dai
08 April 2011
Midwest Dental Holdings, a provider of management services to dental offices, may have its third private equity owner in four years if a pending sale to Friedman Fleischer & Lowe LLC proceeds as planned.
San Francisco firm Friedman Fleischer is buying the Mondovi, Wis., company from its current owner Cressey & Co., said a person familiar with the situation.
A spokesman for Friedman Fleischer declined to comment. David Schuppan, a Cressey principal; and Jim Myer, president and chief financial officer of Midwest, didn't return calls for comment.
Midwest provides management support for functions ranging from handling back-office work and marketing to finding medical assistants and dental hygienists.

Cressey's predecessor, Thoma Cressey Bravo, bought the company in 2007 from fellow buyout firm Svoboda Collins LLC for an undisclosed sum. LBO Wire reported then that Svoboda Collins saw more than three times its money, representing an internal rate of return of over 50%. Svoboda Collins acquired Midwest in 2004.
Midwest had about 450 employees, LBO Wire reported when Thoma Cressey Bravo bought the companyin 2007. More recent financial or staffing information wasn't available.

Thoma Bravo Cressey split in 2008 into two firms, Thoma Bravo and Cressey & Co., with the latter focusing on health-care investments.
Cressey & Co. closed its current fund, Cressey & Co. Fund IV LP, with $350 million in early 2010.
Reach Cressey & Co. at 312-945-5735.
http://www.cresseyco.com
The dental services provider may have its third private equity owner in four years if the sale goes through.

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Cressey & Company
2525 West End Ave # 1175
Nashville, TN 37203-1793
(615) 369-8400

[Keystone Education and Youth Services, LLC has an office on West End Avenue in Nashville as well.  According to Bloomberg, Michael Lindley, Rodney Cawood and Tim Richter are still the top dogs over there.  They may have sold their interest to UHS, but I believe they really just did exactly what Jeff Moos did, recapitalized his income.]
Cressey & Company
233 South Wacker Dr.
Sears Tower, Ste 920
Chicago, IL  60606
312-777-4424
[Another odd factoid here, there is a Mike Lindley on the board of Mountain Dental and Midwest Dental-Mountain Dental is of the same company, but the clinics in Colorado and New Mexico are operated under the name of Mountain Dental-you can check the company filings at the Secretary of State offices in New Mexico for Mountain Dental and Secretary of State office of Iowa for Midwest Dental]

Kool Smiles is now Kool Smiles

Kool Smiles Holding, LLC is now Kool Smiles Holding, LLC.  Yeah I know it sounds stupid, and it is.
Kool Smiles was started by Dr. Tu Tran and Dr. Thien Pham, back in 2002 after leaving the employment of Ed and Michael DeRose at the Smile High clinic on Colorado.  (there a load of info on that on this blog)
By 2004 Tran and Pham reigned in the private equity firm, Friedman Fleischer & Lowe, a San Francisco base company.  Kool Smiles Holding was formed to facilitate the transaction.
NCDR, LLC (National Children Dental Research) was formed to ‘manage’ the Kool Smiles clinics. 
A couple of years ago, Kool Smiles II was created to take over the Kool Smiles in the west.  It was managed under the name DPMS, LLC (Dental Practice Management Services).  All still with FF&L holding the purse strings.
So all they have basically done was remerge.  They once were one, then they were two and now they are one again.
Here’s the Corporate run down:
President – David Lowe
VP and Sec – Aaron Money
Director – Tully Friedman
CFO – S. Thomas Nance
Directors– William Brody, Paul Walker, DDS, Douglas Brown, Kevin Miller, Brian Bouma, and Joseph Mello.
Kool Smiles Reg D form can be seen here.

Tidbits Of Kool Smiles Information

Dr. Tu Tran and Dr. Thein Pham were top dentist's at Smile High clinic in Denver, owned and operated by Eddie, Michael and Dan DeRose where they learned the DeRose Way of spreading dental services to the underserved.

When they broke out on their own, they began with 1 clinic in 2002 and by December 2003 there were three clinics in Georgia.

After 2003 things took off.  By January 2006 the Kool Smiles clinic count had jumped to 14 clinics.  In January 2007 there were 29 clinics and by July of 2007 there were 36.

I know this by using the wayback machine and checking the old copies of the website.

According to what I can find, there are somewhere around 100 clinics across the US, which beats Small Smiles, so they can shut up about being the "Largest" ...unless they mean dirty rotten scoundrels....

Dr. David Malcolm Strange, DDS of Kool Smiles and Kool Kids Dental

Dr. David Strange who is listed as Chief Dental Officer at Kool Smiles is Dr. David M. (Malcolm) Strange, Jr.
His father goes by the name, Malcolm Strange.

I’m pretty sure this is the same Dr. David M. Strange, Jr. that is referred to working at Pediatric Dental Group of Colorado.  PDC has 7 locations in Colorado.

Here is the bio of the Dr. David Strange at Kool Smiles:

Dr. David M. Strange, Chief Dental Officer

Dr.David M Strange is a board certified pediatric dentist. He received his Doctor of Dental Surgery degree from the University of Colorado Health Sciences Center along with his certificate of Pediatric Dentistry from the Children's Medical Center in Dallas, TX and his MS from the Baylor College of Dentistry. Dr Strange was formerly an Associate Clinical Professor at the University of Colorado Health Sciences Center and previously served on the Constitution and By-Laws Committee of the American Academy of Pediatric Dentistry. He is currently serving on theCouncil for Dental Benefits of the American Academy of Pediatric Dentistry and the Virginia Dental Advisory Committee for the Smiles for Children Dental Medicaid program. Dr Strange is also a member in good standing with the American Dental Association, the American Academy of Pediatric Dentistry, the Colorado Academy of Pediatric Dentistry, the Georgia Dental Association and the Southwestern Society...