Behavioral Health Care Deals Rebound in Q3:17
The Behavioral Health Care sector has gained a lot of attention from private investors in recent years, thanks to the opioid addiction epidemic, in general, and to legislation such as the Mental Health Parity and Addiction Equity Act, in particular. Here is how deal volume looked in the third quarter of 2017, and the preceding four quarters. Deal activity rose in Q3:17, up 63% compared with the previous quarter, and up 86% compared with the same quarter a year earlier. The quarter’s total of 13 deals represents 29% of the 45 transactions announced in the past 12 months. The first quarter of 2017 benefitted from the passage of the 21st Century Cures Act in December 2016, which brought... Read More »
AAC Adds Addiction Treatment in New England
AAC Holdings, Inc. (NYSE: AAC), operator of American Addiction Centers, announced its first acquisition of 2017. The company is ramping up again after a hot streak in 2015, when it acquired seven companies for a combined $143 million. Since then, the once-serial acquirer has been quiet on the M&A front as it integrated all its new businesses. It resurfaced briefly in April 2016, when it purchased a sober living facility in Texas for $5 million. Then, on September 13, AAC announced its biggest deal to date. The target, AdCare, Inc., provides addiction treatment in New England. It operates a 114-bed hospital for substance abuse treatment and five outpatient centers in Massachusetts, as... Read More »
Stat of the Week: Behavioral Health Care, +12%
Mergers and acquisitions in the Behavioral Health Care sector have been on a tear in recent years, relatively speaking. The caveat is that many deals are done locally, between private or not-for-profit organizations, and most are not publicly announced. Private equity firms have been piling into this space, and they aren’t known for a lot of transparency around portfolio companies, unless they’re touting their platform-building prowess. Through mid-September, M&A activity in this sector stands at 37 deals, up 12% compared with the same period in 2016 (33 deals then). Dollar values haven’t kept up the pace, however. Just $554 million in financing has been publicly... Read More »
PE Firms Target Behavioral Health, Eating Disorder Programs
Behavioral health care has never been a particularly active sector, but deal volume has increased year-over-year between 2010 and 2016, growing 412% in that time. And there’s a good chance that 2017 will continue this trend. Through August 30, 32 behavioral health care deals have been announced, up 7% compared with the same period last year. So what else is going on this year? So far, we haven’t seen anything close to a mega-deal. The largest price tag this year was Care Capital Properties’ (NYSE: CCP) $380 million acquisition of the real estate assets of six behavioral health hospitals from Signature Healthcare Services LLC, dba Aurora Behavioral Health. This was the second... Read More »MedEquities Trust Enters the Behavioral Health Sector
Real estate investment trusts (REITs) are back in action in the Behavioral Health Care sector. Last April we reported on Care Capital Properties (NYSE: CCP) $380 million deal for six inpatient facilities owned by Signature Healthcare Services LLC (dba Aurora Behavioral Health). Early in August, MedEquities Realty Trust (NYSE: MRT) made its first move into the sector. On August 7, MedEquities announced a definitive agreement to acquire four behavioral health and substance abuse treatment facilities from subsidiaries of AAC Holdings, Inc. (NYSE: AAC), aka American Addiction Centers, for $25 million. Brentwood, Tennessee-based AAC operates 12 residential substance abuse treatment facilities,... Read More »Schedule a demo
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