Kohlberg and Co. Expands its Alita Care Platform

Private equity companies are driving most behavioral health activity in 2017, as they continue to trade practices and build up regional platforms. Through March 28, 2017, 12 behavioral health care deals are on the books. Nearly 60% of these deals were announced by financial buyers, six of which were PE- backed behavioral health companies. One was a private equity firm and one a blank-check investment firm. In April 2016, American Capital Ltd. (NASDAQ: ACAS) announced the sale of its portfolio company, The Meadows of Wickenburg, Inc., to Kohlberg & Company LLC, a New York-based private equity firm, for $180 million. Located in Arizona, The Meadows provides addiction and psychological... Read More »

Behavioral Health Deals Set to Top 2015

Behavioral health care has been a hot sector for investors in recent years. After slumping to just eight announced transactions in 2010, deal volume soared steadily to 40 transactions in 2015. As of this writing, the sector has recorded 40 transactions in 2016, with two weeks left in the year. Even if no new deals surface before January 1, we expect the deal momentum to keep building through 2017, thanks to the tailwinds provided by the passage this month of the 21st Century Cures Act. The bipartisan bill, signed by President Obama, authorizes $1 billion in state grants over the next two years to address opioid abuse and other addictions. Most of that money goes to treatment facilities,... Read More »
Behavioral Health Care M&A Recap 2015

Behavioral Health Care M&A Recap 2015

Behavioral health is a growing national concern, finally, and investors are responding to the growing public attention. Mergers and acquisitions in this healthcare sector rose more than 46% last year, to more than 40 transactions. The two publicly traded, pure-play companies in this area, AAC Holdings (NYSE: AAC) and Acadia Healthcare Company (NASDAQ: ACHC), lead the list of acquirers (six and five announced deals, respectively). Private equity firms were also active acquirers, including Kohlberg & Company, Revelstoke Capital Partners, Flexpoint Ford, Vestar Capital Partners and Shore Point Partners. Many PE portfolio companies have been building behavioral health care... Read More »

Behavioral Health Care M&A in 2015

It’s only mid-September, but the number of behavioral health care transactions is approaching last year’s total—and is likely to surpass it. Through September 11, we’ve recorded 21 deals in this sector, compared with 2014’s total of 22, which was the highest number of deals since 2006’s total of 24 transactions. American Addiction Centers (NYSE: AAC) and Acadia Healthcare Company (NASDAQ: ACHC) made four deals apiece, and six private equity firms, including Flexpoint Ford, Kohlberg and Company and Revelstoke Capital Partners, made one acquisition apiece. YearTotal DealsTotal Dollars 2015*21$474 million 201422$2.2 billion 201318$136 million 201217$1.0 billion 201114$314 million * through... Read More »