• Proceeds funded distribution to shareholders, doctor partners, and Charlesbank
• MB2 expects to generate USD 300m EBITDA this year

MB2 Dental, a dental services organization backed by Charlesbank Capital Partners, has pulled its sales process and pursued a dividend recapitalization, according to four sources familiar with the situation.

Dallas-based MB2, which is expected to generate USD 300m EBITDA this year, has recently shelved its minority stake sale process and raised debt from Warburg Pincus to fund a distribution to shareholders of MB2, doctor partners, and Charlesbank, according to sources.

Warburg Pincus provided USD 525m in HoldCo pay-in-kind (PIK) notes yielding around 14%, to fund the distribution, according to some of the sources.

In February, MB2 Dental secured a USD 2.344 bn unitranche debt facility from credit vehicles and accounts managed by KKR, according to a company press release.

Mergermarket reported last month that MB2 was closing in on a stake sale alongside Moelis. Charlesbank acquired a majority stake sale in 2021 for more than USD 1bn, as reported.

MB2 has remained acquisitive this year purchasing Central Park West Pediatric Dentistry and Orthodontics earlier this month, Scheich Family Dentistry in May, Rockville Centre for Dentistry in June, and Montshire Endodontics in August.

Founder Dr. Chris Steven Villanueva launched MB2 in 2017. The company offers general dentistry services, orthodontics, cosmetic dentistry, and oral surgery. MB2 has partnered with more than 700 general and specialty dental practices across 42 states, according to its website.

Moelis and Warburg Pincus declined to comment. MB2 and Charlesbank did not respond to requests seeking comment.