The Behavioral Health sector isn’t charging into the New Year. Only two deals have been announced in the first three weeks of January, but one of those is unusual for the sector.
On January 11, 2017, Global Partner Acquisition Corp. (NASDAQ: GPAC), a blank-check company formed for the purpose of effecting a business combination, merged with Alabama-based Sequel Youth and Family Services, a portfolio company of Levine Leichtman Capital Partners.
Sequel Youth and Family Services now operates 44 residential and community-based programs in 19 states that offer diversified behavioral health services for children, adolescents and adults with behavioral, emotional or physical challenges.
In March 2011, as part of Levine Leichtman, Sequel acquired Camelot System of Care in Austin, Texas. The target served at-risk youth and developed a residential program focused on autism and autism-related disorders.
The combined organization of Sequel and GPAC will be named Sequel Youth and Family Services, Inc. and the company will be listed on the NASDAQ exchange, with anticipated initial enterprise value of about $423.3 million. Sequel equity holders will own 20.7% of the combined company, with GPAC shareholders owning the remaining 79.3%.