For Immediate Release – May 20, 2016 – Kohlberg & Company, L.L.C. (“Kohlberg”), a leading private equity firm specializing in middle-market investing, today announced the acquisition of Meadows Behavioral Healthcare (“The Meadows”) and the formation of Alita Care, LLC (“Alita”), which will serve as the parent holding company for The Meadows and Kohlberg’s existing portfolio company, Sunspire Health, LLC (“Sunspire”).
The Meadows and Sunspire will continue to operate as independent brands within Alita, while exploring ways to improve patient care through the sharing of best practices. Jim Dredge, CEO of Meadows Behavioral Healthcare, has accepted the position of Chief Executive Officer of Alita at closing and will lead the combined company. “We are thrilled to be joining forces with Sunspire, whose patient-centric model and national footprint, combined with the 40-year history of clinical excellence at The Meadows, creates a compelling value proposition for patients and their families, clinical referral sources, and payors. Combined, we will be able to offer expanded full continuum-of-care treatment to patients suffering from a wide cross-section of addictions and other behavioral health disorders, including eating disorders, sexual addiction treatment and treatment specifically focused on young adults. Furthermore, with 15 differentiated programs in eight states, we will have the ability to serve patients across the country.” Clinical and day- to-day operations at both companies will not be impacted by the transaction, and both The Meadows and Sunspire will continue to focus on providing best-in-class treatment services for patients and their families.
A.J. Schreiber, CEO of Sunspire, who at closing has been appointed Vice Chairman of the Board of Alita, said “Sunspire and The Meadows share common cultures and similar passions in providing industry leading treatment. We are very excited to be entering this phase of our company’s evolution under the Alita umbrella.”
“We are very pleased to further develop our investment in the behavioral health services sector, and look forward to continuing to invest in both companies to support their strategic initiatives and best-in-class clinical offerings,” stated Evan Wildstein, Partner of Kohlberg. “We have a deep appreciation for the mission-driven cultures of these organizations and the respective leadership teams that are committed to improving the lives of the patients and families they serve.”
Harris Williams & Co. and Cain Brothers served as financial advisors and McGuireWoods LLP served as legal counsel to The Meadows. Paul, Weiss, Rifkind, Wharton & Garrison LLP and Benesch, Friedlander, Coplan & Aronoff LLP acted as legal counsel and regulatory counsel, respectively, to Kohlberg. Antares Capital LP, Capital One Healthcare, CIT Healthcare Corporate Finance, and Partners Group (USA) Inc. provided committed debt financing to close the transaction.
About Sunspire Health
Sunspire Health, LLC is a leading provider of behavioral health services for the treatment of substance abuse and other co-occurring disorders. The Company operates a portfolio of independently branded treatment centers, currently comprising ten locations in California, Florida, Illinois, Massachusetts, Oregon, South Carolina, and Texas. Utilizing evidence-based clinical interventions and an abstinence-focused approach, Sunspire offers treatment for those living with substance use disorders, gambling addiction, sex addiction, and co-occurring mental illnesses. Sunspire delivers improved patient outcomes by offering a full continuum of care and individualized treatment plans in intimate settings in residential and outpatient facilities across the nation. For more information, please visit www.sunspirehealth.com.
About The Meadows
Meadows Behavioral Healthcare is the industry leader in providing treatment for trauma and for treating people struggling with addiction, eating disorders, and related mental health conditions. The company’s programs — The Meadows, The Claudia Black Young Adult Center at The Meadows, Gentle Path at The Meadows, Remuda Ranch at The Meadows, The Meadows Outpatient Center, and a series of intensive workshops — are the premier choice of patients, families, and behavioral health professionals. For more information, please visit www.themeadows.com.
Kohlberg & Company, L.L.C. (“Kohlberg”) is a leading private equity firm headquartered in New York. Since its inception in 1987, Kohlberg has organized seven private equity funds, through which it has raised over $5 billion of committed equity capital. Over its 29-year history, Kohlberg has completed 68 platform investments and over 145 add-on acquisitions, with an aggregate transaction value of approximately $10 billion. For more information, please visit www.kohlberg.com.