Behavioral health care deals are on a hot streak. Only three quarters of the way through 2018, at least 59 deals have been made public, compared with 56 in all of 2017. Despite the soaring valuations, the buyers keep lining up.
For example, another platform-builder just entered the sector. River Cities Capital Funds, a growth equity firm based in Cincinnati, acquired Carolina Partners in Mental HealthCare (CPMH), North Carolina’s largest provider of outpatient mental and behavioral healthcare services across North Carolina with more than 120 mental health professionals.
River Cities Capital plans to work with CPMH’s management to aggressively grow the company’s footprint across North Carolina and beyond.
Meanwhile, further west, two not-for-profits made a deal in Arkansas. Preferred Family Healthcare, based in St. Louis, Missouri, agreed to sell its Arkansas assets. The company provides comprehensive behavioral health care to approximately 5,200 patients across 47 facilities in the state.
The buyer, Quapaw House, Inc., provides comprehensive behavioral health prevention, treatment and education services to clients, familes and communities in and around Hot Springs, Arkansas.
This acquisition follows Preferred Family Healthcare’s announcement that it planned to close its Arkansas operations. The company has been embroiled in scandals in the past several months. Its website gives specific instructions for its Arkansas members to find care once the deal closes on October 12.
And Summit BHC, a portfolio company of Flexpoint Ford, is at it again. Earlier this month the company announced its 15th acquisition overall, and its first in the state of Iowa. The target was St. Gregory Retreat Center (56 beds) in Bayard, Iowa. Included in the deal is an additional property in Adair, Iowa that will be used to expand services and bed capacity.
St. Gregory offers residential treatment for substance abuse. It will be renamed St. Gregory Recovery Center.
