OdontoCompany Secures Strategic Investment from L Catterton to Accelerate Growth in Dental Services

VCBeat (WeChat ID: vcbeat) learned from foreign media reports that on November 6, 2019, local time, OdontoCompany, a leading dental clinic franchisor in Brazil, announced it had secured a significant strategic investment from the private equity firm L Catterton. The terms of the transaction were not disclosed.

It is understood that L Catterton will collaborate with Dr. Paulo Zahr, Founder and CEO of OdontoCompany, and existing shareholder José Carlos Semenzato to accelerate the growth of OdontoCompany’s dental services business.

OdontoCompany, founded in 1990, was projected to operate 700 active dental clinics across Brazil by the end of 2019, offering services in orthodontics, general dentistry, cosmetic dentistry, endodontics, dental implants, and other specialties. Prioritizing innovation and quality, OdontoCompany is committed to enhancing its services and making dental care more accessible to all Brazilians. In early 2019, OdontoCompany acquired a significant stake in Oral Sin, a dental clinic franchisor that provides dental implant services through more than 160 clinics, marking a wave of consolidation in Brazil’s dental clinic industry. Today, OdontoCompany’s franchise network spans all 27 states of Brazil, serving the dental care needs of over 800,000 patients annually.

Dr. Zahr stated, “This investment underscores the tremendous effort and hard work demonstrated by the OdontoCompany team and our franchisees in delivering dental services to patients across China, while also highlighting the significant growth potential of our business model. Leveraging our partnership with L Catterton and the continued support from Semenzato, we will pursue both organic and strategic expansion, further solidifying our position as a market pioneer by setting new standards in dental care.”

Julio Babecki, Executive Partner at L Catterton, stated, “OdontoCompany has achieved remarkable growth over the past 30 years and is ideally positioned to benefit from favorable dental care policies in Brazil. We are confident that, together with Paulo and Semenzato, we will continue to expand OdontoCompany’s network of dental clinics across Brazil while delivering high-quality services to patients. Through extensive benchmarking, new training programs, and enhanced IT infrastructure, we look forward to providing greater support to our franchisees.”

Farah Khan, a partner at L Catterton, stated, “We believe OdontoCompany brings extensive experience to delivering affordable pricing, innovative technologies, and top-tier dental services to patients. The founders and management team of OdontoCompany have achieved remarkable success in the market, and we are delighted to support their vision of enabling all Brazilians to better access dental care.”

Semenzato, Founder and Chairman of the Semenzato Group, joined OdontoCompany in 2011, when the company operated only three clinics. Leveraging its extensive expertise in franchising, OdontoCompany achieved a sales growth rate of 45% over the past three years.

Mr. Semenzato added, “With growing health awareness, Brazil’s dental industry has experienced significant growth, and OdontoCompany has built a network to meet the rising demand for dental care. I am pleased to partner with the L Catterton team to support management in expanding OdontoCompany’s market share, while leveraging L Catterton’s operational expertise and resources to enhance our experience as franchisees.”

L Catterton is the world’s largest consumer-focused private equity firm, with approximately $20 billion in equity capital across seven fund strategies and offices in 17 locations worldwide. The L Catterton team comprises more than 190 investment and operations professionals collaborating with management teams around the globe. Since 1989, the firm has completed over 200 investments in leading consumer brands.

Semenzato Group is a leading investment firm in Brazil’s franchising market. With investments in companies such as Espacolaser, OdontoCompany, Instituto Embelleze, and Oakberry, its portfolio encompasses more than 1,800 franchise units.

(Compiled by Xiong Hui)