The biggest deal in the Behavioral Health Care sector featured a growing trend in healthcare M&A: a publicly traded company taken private. In this case, it was Centerbridge Partners buying Civitas Solutions, Inc. (NYSE: CIVI) for approximately $1.4 billion.
Founded in 1980, Civitas Solutions provides home- and community-based health and human services to must-serve individuals with intellectual, developmental, physical or behavioral disabilities and other special needs. The Boston-based company markets its services nationally as The Mentor Network and provides behavioral health care in 36 states.
Under the terms of the agreement, Centerbridge will acquire all outstanding shares of Civitas for $17.75 per share, a 27% premium to the 30-day volume-weighted average price as of December 18. To put the deal in context, the second largest deal in this sector, by disclosed prices, was CareTech Holdings plc’s purchase of Cambian Group plc in the U.K. for $427.6 million.
For the 2018 fiscal year, Civitas reported EBITDA of $173.8 million and revenue of $1.6 billion, both an increase over the 2017 fiscal year.
Vestar Capital Partners will exit its investment in Civitas. Centerbridge expects the deal to close at the end of the company’s second quarter.