Medical Properties Trust Buys Behavioral Health Portfolio

Medical Properties Trust Buys Behavioral Health Portfolio

After Acadia Healthcare Company, Inc. (NASDAQ: ACHC) divested Priory Group, its U.K. behavioral health care business, for $1.47 billion, Priory Group is doing some unloading of its own. Now backed by Waterland Private Equity, Priory Group is selling a portfolio of approximately 40 select behavioral health facilities located in the United Kingdom to Medical Properties Trust, Inc. (NYSE: MPW). The Birmingham, Alabama-based REIT will pay approximately GBP 800 million, or $1.087 billion, plus customary stamp duty tax and other transaction costs.  The properties will be subject to long-term sale-leaseback agreements with Priory, which are expected to provide MPT a GAAP-basis yield of 8.6% and... Read More »
Acadia Healthcare Exits the U.K.

Acadia Healthcare Exits the U.K.

After a brief suspension in the sale process, Acadia Healthcare Company, Inc. (NASDAQ: ACHC) has finally found a buyer for its U.K. behavioral health care operations, known as Priory Group. Acadia first began exploring a divestment of Priory Group in early 2020, but talks were suspended when the Covid-19 pandemic hit. In September, Acadia released a statement that said it was resuming the sale process, and the company finally managed to close the deal on December 30. The buyer is Waterland Private Equity, an independent private equity investment group based in The Netherlands. The firm is paying approximately GBP 1.78 billion, or US $1.47 billion, based on the current exchange rate, for... Read More »
BayMark Health Announces Three Deals

BayMark Health Announces Three Deals

BayMark Health Services announced a trio of deals last week alone, doubling its transaction count for 2020, based on results from Healthcare Deals Database. With the backing of private equity firm Webster Equity Partners, the nationwide behavioral health provider acquired three new providers across three states for an undisclosed sum. For the first deal, BayMark Health acquired Portland, Maine- based Liberty Bay Recovery Center, a residential treatment facility (59 beds) that offers treatment for a variety of addictions including not only opioids but also alcohol, cocaine, methamphetamine, prescription drugs and other substances. It provides multiple levels of care including residential,... Read More »
Behavioral Health Care M&A Survived the Summer

Behavioral Health Care M&A Survived the Summer

The Behavioral Health Care M&A market and industry have experienced one effect from COVID-19 that most other healthcare services have not and that is an increase in patients seeking treatment. The pandemic’s impact on jobs, social interactions and myriad other parts of daily life has caused a great degree of psychological stress on individuals. Both Acadia Healthcare Company (NASDAQ: ACHC) and Universal Health Services (NYSE: UHS) noted increased demand for services in the second quarter of 2020 and are cautiously optimistic about patient volumes in the second half of this year.   Behavioral Health Care M&A activity didn’t stop completely, either. In... Read More »
CloudMD Adds Behavioral Health Clinic Network

CloudMD Adds Behavioral Health Clinic Network

CloudMD Software & Services Inc. (OTCMKTS: DOCRF) has spent most of 2020 expanding its physical presence throughout North America, reaching into new markets. Last week, the company acquired Re:Function Health Group Inc., a leading rehabilitation clinic network, with 7 clinics and 35 behavioral health specialists and allied health professionals across British Columbia. CloudMD will pay $3.4 million through a mix of cash and shares, and a potential $1.15 million in performance-based earnouts. Re:Function Health generated $4.38 million in revenue in 2019. This acquisition represents a significant addition to the depth and spectrum of healthcare services provided by the CloudMD platform.... Read More »
Pinnacle Treatment Centers Adds HealthQwest

Pinnacle Treatment Centers Adds HealthQwest

Pinnacle Treatment Centers and Linden Capital Partners, L.P. began their partnership in 2016, launching a national behavioral health platform in the years since. When Pinnacle Treatment Centers was acquired by Linden Capital, it served roughly 10,000 patients daily at approximately 30 facilities, according to Deal Search Online. In 2020, the company treats 31,000 patients daily in California, Indiana, Kentucky, New Jersey, Ohio, Pennsylvania and Virginia, with over 115 community-based locations. The company has grown organically, opening new locations and facilities, but also through acquisitions with the backing of Linden Capital. In April 2019, Pinnacle acquired three outpatient opioid... Read More »