Behavioral Health Care Deals Keep Growing
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... Read More »
DW Healthcare Partners Exits Rehab and Enters Behavioral Health
DW Healthcare Partners has had a busy summer, buying a healthcare staffing company and a behavioral health platform, then selling its rehabilitation business. In June, the firm announced its investment in Aequor Healthcare Services in Piscataway, New Jersey, the sixth investment made by DW Healthcare Partners Fund IV, LP. Aequor specializes in healthcare and clinical staffing by providing physicians, therapists, nurses, technologists and allied healthcare professionals to hospital systems, nursing homes, home care providers, clinics, school systems, laboratories, and pharmaceutical/life sciences organizations nationwide. In August, it acquired California Psychcare, a behavioral services... Read More »
Behavioral Health Deals Set a Strong Pace in H1:18
The Behavioral Health Care sector has been on a hot streak for more than three years now. In 2018, the pace may be picking up even more. In the first half of the year, 34 transactions were announced, compared with 29 in the first half of 2017. Prices for these deals, which are primarily between private equity firms and/or not-for-profit entities, are scarce. Only one deal in this sector disclosed a price so far this year, an approximately $108 million transaction in South Africa, for privately held Akeso Clinics. Netcare Limited, the second largest private hospital company in South Africa, was the buyer. In both years, companies that treated substance abuse disorders were most popular with... Read More »
Community Psychiatric Clinic Merges with Navos
Two Seattle-based not-for-profits have teamed up to scale up, essentially. Community Psychiatric Clinic (CPC) and Navos, a wholly owned affiliate of MultiCare Health System, announced their merger on June 14. Navos is the public behavioral health provider for more than 40% of all youth served in the King County community behavioral health system, and is the largest behavioral health provider in Washington state. CPC operates four clinics in Belltown, Lake City, North Gate and Wallingford, and provides mental health, substance abuse disorder treatment programs, as well as supportive housing services. Navos offers a full spectrum of behavioral health services to more than 12,000 low-income... Read More »
Talk of a Bubble in Healthcare Services Slows Some Deals
Yes, the B-word is being bandied about among deal makers these days. Talk of a bubble, particularly in healthcare services, is becoming more open. We heard it often at a recent breakfast meeting of healthcare investors, and again and again in conversations since. In May, some 130 transactions were made public, representing a 26% decline compared with April’s out-sized 175 transactions, and 8% below the 142 deals recorded in May 2017. Deals in the services sectors accounted for 56% of the month’s total, which is much lower than their share in April (62%) and the same month a year earlier (65%). It’s not just that the technology sectors are picking up some steam after a long drought,... Read More »Schedule a demo
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