The out-of-condition operator-operator of two psychological well being facilities is for sale, a report on PE Hub claimed. The on line journal tracks mergers and acquisitions, with certain target on private equity traders and their portfolios and targets.
Trade journal Behavioral Wellness Business also picked up the report.
Tennessee-based Summit Behavioral Healthcare LLC debuted 92-bed Johnstown Heights Behavioral Wellness in May perhaps in a setting up it bought for $29.25 million in December. In January 2020 Summit BHC purchased 112-bed Peak See Behavioral Well being in Colorado Springs.
Summit owns two dozen similar hospitals in the U.S. and is owned by private equity firms Lee Fairness Companions in New York and San Francisco-based FFL Partners, previously Friedman, Fleischer & Lowe.
The recent entrepreneurs acquired Summit in 2017 from prior entrepreneurs, Chicago-based Flexpoint Ford LLC and other investors, which had invested in 2015. Summit had about a dozen psychiatric hospitals in 2017 it was established in 2013.
According to their respective internet websites, Lee invests $50 million to $100 million in equity for managing stakes whilst FFL marks out center market place prospective clients with income of $30 million to $400 million and a valuation of up to $300 million.
PE Hub stated Summit’s 2021 EBITDA is projected at $80 million to $90 million, up from a present operate level in the mid-$70 tens of millions. It mentioned Lee and FFL individual equivalent stakes and have employed financial investment bankers Moelis and Jefferies to market Summit. Moelis aided them invest in Summit from Flexpoint Ford in 2017.
Summit’s C-Suite features senior executives who have labored alongside one another at many Tennessee-dependent behavioral wellness healthcare facility techniques. These contain chief government Brent Turner, named to his write-up very last September Jon O’Shaughnessy, CEO for about a 12 months, who moved down a notch to president when it employed Turner and main fiscal officer Chuck Edwards, a Summit co-founder who was previously with Chicago-dependent investor Waud Funds Partners. Waud was a vast majority owner of the now-public Acadia Health care Co. Inc. (Nasdaq: ACHC), a $6 billion (market cap) psychological overall health-care medical center technique of 225 services and 10,000 beds. Turner and O’Shaughnessy previously worked together there.
Former Johnstown Heights CEO Scott Snodgrass left that put up Aug. 9 just after about 4 months on the task for the identical function at Centennial Peaks Hospital in Louisville. Centennial is owned by Pennsylvania-based operator UHS Inc. (NYSE: UHS), which very last 12 months paid $3.1 billion for then-public Psychiatric Methods Inc., with 100 services and 11,000 beds, which was one more alma mater of O’Shaughnessy and Turner.
For extra on Summit, a achievable sale, and the two hospitals, see the September print edition of BizWest.
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