The behavioral health services provider, The Stepping Stones Group, has pushed into the Philadelphia market with the purchase of EBS Healthcare, a not-for-profit based in West Chester, Pennsylvania. EBS Healthcare is a therapeutic and behavioral company that employs speech-language pathologists, occupational therapists and physical therapists. The company also has a division called the EBS Children’s Institute, a leading research, training and teaching organization working to advance the field of special education and pediatric therapy. EBS treats roughly 2.1 million patients each year. 

With the addition of EBS Healthcare, the combined company will have a client base of children, families and communities in over 900 school districts across 42 states. 

The Stepping Stones Group has been backed by Five Arrows Capital Partners since the private equity firm took a majority stake in the company in January 2018, according to search results in our Healthcare Deals Database. The previous backer, Shore Capital Partner, has maintained a minority stake. 

Combined, The Stepping Stones Group and Five Arrows Capital have reported five transactions together, including this most recent one. In 2019, there were three deal announcements: New York City-based The Perfect PlaygroundNew England ABA, Inc. in Wakefield, Massachusetts and StaffRehab in Newport Beach, California. In 2020, there was one deal announcement for Star of CA in Orange, California, a provider of home, community and school-based applied behavioral analysis therapy and mental health services. 

In the transaction for EBS Healthcare, The Stepping Stones Group was represented by Troutman Pepper Hamilton Sanders LLP for legal advisory services. EBS Healthcare was represented by Capstone Headwaters as exclusive financial advisor and Polsinelli for legal advisory services