Dental lab acquisition leads firm to move production from China to its Sarasota

A Florida-based dental products manufacturer and industry consolidator announced Friday that it acquired Dunedin-based dental laboratory Dr. Tooth LLC — a deal the company says nearly doubled its estimated annualized revenue and will bring dental restoration work currently outsourced to China back to Sarasota instead. 

Standard Dental Labs, a statewide company with headquarters in Orlando, says the acquisition deal went into effect on Friday and includes substantially all operating assets of Dr. Tooth LLC, which is also known as Sheen Dental Laboratory and Hansen Incarnati, the release says. 

Standard Dental Labs did not disclose a purchase price. The deal was structured as an asset purchase, the release says, with a combination of cash and Standard Dental Labs common stock, including performance conditions tied to retained customer revenue, the release says.   

The acquisition advances Standard Dental Labs’ strategy of consolidating Florida dental laboratories around regional production facilities, the release says. The company now plans to move production for all of Dr. Tooth’s dental products, currently outsourced to China, into its Sarasota operations located at 4232 McIntosh Lane. 

“Our focus is to bring this work back to Florida and give dentists direct access to the people making their restorations,” James Brooks, president and chief executive officer of Standard Dental Labs Inc. says in the release. 

Standard Dental Labs’ estimates acquiring Dr. Tooth LLC adds just over $800,000 in annualized revenue to its existing estimated $822,000. That nearly doubles the company’s combined annualized revenue base, bringing it to more than $1.6 million in estimated operating activity over 12 months. 

Dr. Tooth’s existing management team of Denis Thaxton and Gavin White will remain involved in the operation, the release says. Standard Dental Labs’ management says it hopes to rebuild the acquired business to more than $1.1 million in annualized revenue by retaining current accounts, recovering former customers and successfully transitioning production. 

“We are adding an established customer base to our Sarasota operation, where the additional production can improve the economics of the facility,” Brooks says in the release. “We also see a clear opportunity to win back business by giving customers the domestic production and responsive service they want.”