Harris Williams & Co. Advises Meadows Behavioral Healthcare on its Sale to Kohlberg & Company

May 20, 2016

Harris Williams & Co., a preeminent middle market investment bank focused on the advisory needs of clients worldwide for 25 years, announces the sale of Meadows Behavioral Healthcare (The Meadows), a leading provider of behavioral health services, to Kohlberg & Company, LLC (Kohlberg). In conjunction with the acquisition of The Meadows, Kohlberg has announced 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). Harris Williams & Co. served as the financial advisor to The Meadows, a portfolio company of American Capital, Ltd (American Capital; Nasdaq: ACAS). The transaction was led by James Clark, Whit Knier, Andy Dixon, Bill Kayser and Grace Kingdon of Harris Williams & Co.’s Healthcare & Life Sciences (HCLS) Group.

“We are excited to have represented The Meadows’ shareholders and management in this transaction. The Meadows has a reputation among clinicians as the most trusted name in the treatment of trauma, addiction, eating disorders and mental illnesses,” said James Clark, a managing director at Harris Williams & Co. “The transaction is indicative of the continued strong interest in high-quality behavioral healthcare platforms from both strategic and financial acquirers as they seek to serve the growing demand for treatment services in this country.”

“Alita represents the combination of two of the premier providers in the behavioral health industry and the platform is well positioned for success and growth in partnership with Kohlberg,” Whit Knier, a director at Harris Williams & Co., added. 

The Meadows 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.

American Capital is a publicly traded private equity firm and global asset manager. American Capital, both directly and through its asset management business, originates, underwrites and manages investments in middle market private equity, leveraged finance, real estate and structured products. American Capital manages $20 billion of assets, including assets on its balance sheet and fee earning assets under management by affiliated managers, with $77 billion of total assets under management (including levered assets). Through a wholly owned affiliate, American Capital manages publicly traded American Capital Agency Corp. (Nasdaq: AGNC), American Capital Mortgage Investment Corp. (Nasdaq: MTGE) and American Capital Senior Floating, Ltd. (Nasdaq: ACSF) with approximately $10 billion of total net book value.  American Capital and its affiliates operate out of six offices in the U.S. and Europe. 

Sunspire 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.

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.

Harris Williams & Co. (www.harriswilliams.com), a member of The PNC Financial Services Group, Inc. (NYSE: PNC), is a preeminent middle market investment bank focused on the advisory needs of clients worldwide.  The firm has deep industry knowledge, global transaction expertise and an unwavering commitment to excellence.  Harris Williams & Co. provides sell-side and acquisition advisory, restructuring advisory, board advisory, private placements and capital markets advisory services.

Harris Williams & Co.’s HCLS Group has experience across a broad range of sectors, including alternate site care, outsourced clinical and practice management services; healthcare staffing; healthcare IT; managed care and cost containment services; medical devices, products and distribution; and outsourced pharma services.  For more information on the HCLS Group and other recent transactions, visit the HCLS Group’s section of the Harris Williams & Co. website.

Investment banking services are provided by Harris Williams LLC, a registered broker-dealer and member of FINRA and SIPC, and Harris Williams & Co. Ltd, which is authorized and regulated by the Financial Conduct Authority.  Harris Williams & Co. is a trade name under which Harris Williams LLC and Harris Williams & Co. Ltd conduct business.