WAKEFIELD, MA -- 09/25/07 --
American Dental Partners, Inc., (NASDAQ: ADPI) announced today that it has completed the previously announced
acquisition of the outstanding capital stock of Minnesota-based
Metropolitan Dental Holdings, Inc. In connection with the acquisition, a
subsidiary of Metropolitan Dental Holdings, Inc. entered into a 40-year
service agreement with an affiliated professional limited liability company
(collectively with Metropolitan Dental Holdings, Inc. and its subsidiaries,
"Metro Dentalcare"). The purchase price paid in connection with the
acquisition consisted of cash in the amount of $85 million, and a
contingent earnout of up to $10 million payable in 2008 based on Metro
Dentalcare's earnings before interest, taxes, depreciation and amortization
for the fiscal year ended December 31, 2007. The acquisition was funded by
the Company's revolving credit facility and an interim credit facility.
Founded in 1968, Metro Dentalcare is a multi-specialty dental group with
more than 90 dentists, 34 dental facilities located throughout the greater
Minneapolis-St. Paul area and a dental lab. In addition to general
dentistry, Metro Dentalcare provides orthodontics, pediatric dentistry,
periodontics, endodontics and oral surgery. Metro Dentalcare generates
approximately $70 million in patient revenue annually.
American Dental Partners is one of the nation's leading business partners
to dental group practices. The Company is affiliated with 26 dental group
practices which have 258 dental facilities with 2,293 operatories located
in 18 states.
"Safe Harbor" Statement under the Private Securities Litigation Reform Act
of 1995: With the exception of the historical information contained in this
news release, the matters described herein contain "forward-looking"
statements that involve risk and uncertainties that may individually or
collectively impact the matters herein described, including but not limited
to the possibility that we may not realize the benefits expected from our
acquisition and affiliation strategy, economic, regulatory and/or other
factors outside the control of the Company, which are detailed from time to
time in the "Risk Factors" section of the Company's SEC reports, including
the annual report on Form 10-K for the year ended December 31, 2006.
Contacts:
Gregory A. Serrao
Chairman, President and Chief Executive Officer
781-224-0880
Breht T. Feigh
Executive Vice President, Chief Financial Officer and Treasurer
781-224-0880
American Dental Partners, Inc.
401 Edgewater Place, Suite 430
Wakefield, MA 01880
Phone: 781/224-0880
Fax: 781/224-4216
