Sunspire represents platform investment in Behavioral Health Services for Kohlberg & Company
New Investment Will Fuel Company’s Continued Growth, Expansion
Lyndhurst, NJ, June 8, 2015 – Sunspire Health (“Sunspire” or the “Company”), a leading provider of behavioral health services for the treatment of substance abuse and other co-occurring disorders, today announced the completion of a significant transaction and partnership that positions the Company for accelerated growth. Kohlberg & Company, L.L.C. (“Kohlberg”), a leading private equity firm specializing in middle-market investing, has acquired majority ownership of the Company and intends to support Sunspire’s growth initiatives from its $1.6 billion fund, Kohlberg Investors VII.
“We are thrilled to team up with Kohlberg and look forward to the next phase of the company’s growth and development,” said A.J. Schreiber, Chief Executive Officer of Sunspire. Schreiber added, “We remain centrally focused on providing quality treatment and supporting our dedicated team. Kohlberg shares those values and we have a common vision for the future of Sunspire.”
Sunspire’s executive team will remain completely intact, and the Company will continue to emphasize a patient-centric strategy focused on improving treatment outcomes. As part of the transaction, healthcare services industry veteran Robert A. Cucuel, Jr. has joined Sunspire’s board of directors as Chairman. Mr. Cucuel brings over 30 years of healthcare services experience in executive management and operations and has completed two successful investments in healthcare services consolidations for Kohlberg.
Evan Wildstein, Partner at Kohlberg & Company said, “Sunspire is a leading provider with a strong clinical model that is well positioned for growth, both organically and through targeted acquisitions. We look forward to partnering with A.J. and his team in building on the substantial success that the company has achieved to date.”
GE Capital, Healthcare Financial Services and CIT Healthcare Corporate Finance provided Kohlberg with credit financing to close the transaction. Paul, Weiss, Rifkind, Wharton & Garrison LLP and Benesch, Friedlander, Coplan & Aronoff LLP acted as legal counsel and regulatory counsel, respectively, to Kohlberg. Coker Capital Advisors and McDermott Will & Emery acted as financial and legal advisor, respectively, to Sunspire.
About Sunspire Health
Sunspire is an industry leader in the field of behavioral health treatment. As a national network of addiction treatment providers, Sunspire Health offers abstinence-, evidence- and experiential-based treatment for those suffering with substance use disorders, co-occurring mental health disorders, eating disorders, problem gambling and sex addiction. Sunspire Health is headquartered in Lyndhurst, New Jersey, and currently includes six licensed residential treatment facilities located in
California, Florida, Massachusetts and Oregon, with new facilities opening in Hilton Head Island, SC, Gilman, IL and Key Largo, FL in 2015.
About Kohlberg & Company
Kohlberg & Company is a leading private equity firm specializing in middle market investing. 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 27-year history, Kohlberg has completed 65 platform investments and 139 add-on acquisitions, with an aggregate transaction value of approximately $10 billion. For more information, please visit www.kohlberg.com.