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Private Equity Health Care Acquisitions – December 2021

In light of the growing investor interest in health care and the risks associated with private equity ownership of health care companies, the Private Equity Stakeholder Project will be tracking private equity-backed health care acquisitions. Below is a list of private equity health care buyouts and add-on acquisitions completed or announced during December 2021. We will continue to track acquisitions on a monthly basis.

See November 2021 acquisitions here.

Behavioral health remains a popular investment target for private equity investors, with at least 10 deals in December. This is part of a growing trend of private equity in the space, which includes mental health, addiction treatment, and autism services. According to data provider Pitchbook, “No other major healthcare provider space has seen such explosive growth in the past five or so years.”[1]

Investment in behavioral health is expected to continue growing in 2022. “In mental health, an explosion of platform activity since 2020 foretells accelerated consolidation in the years to come,” writes Pitchbook. “…By contrast, [Substance Use Disorder] treatment, the oldest behavioral health segment, should see another wave of private equity investment start as platforms that last transacted in 2015 through 2018 return to the market, and may begin to enter the early stages of platform consolidation in the coming years.”[2]

December’s private equity behavioral health deals include American Securities’ acquisition of FullBloom (fka Catapult Learning[3]), an educational services platform that provides academic intervention, special education programs, and behavioral health services for K-12 students. FullBloom operates in 41 states and Washington, DC, and has at least 7,800 employees, making this one of the largest behavioral health transactions of the year.[4]

American Securities has come under fire for its ownership of prison telephone and communications provider Global Tel Link (GTL), which has faced scrutiny for exorbitant phone and video-calling rates, flaunting legal protections, allegedly conspiring to bribe government officials.[5]

December Behavioral Health Acquisitions

CompanyTypePE Firm(s)Platform AcquirerLocations
FullBloomYouth behavioral health, autism services, academic intervention, teletherapyAmerican Securities n/a41 states and Washington, DC
Granite Recovery CentersAddiction treatmentWebster Equity PartnersBayMark Health ServicesNH
Riverwood GroupAddiction treatmentWebster Equity PartnersBayMark Health ServicesAR, FL, IL, IN, KS, NE, SD
Community Medical ServicesAddiction treatment, teletherapyFFL Partners, Two Sigma Investments n/aAK, AZ, CO, IN, MI MN, MT, ND, OH, TX, WI
ABA ToolsAutism services softwareInsight PartnersCentralReach 
Atlanta Addiction Recovery CenterAddiction treatmentNautic PartnersPyramid HealthcareCT, GA, NC, NJ
The BluffAddiction treatmentNautic PartnersPyramid HealthcareCT, GA, NC, NJ
South Sound Behavior TherapyAutism servicesNew MainStream CapitalCenter for Social DynamicsCA, CO, OR, WA
Right Path Addiction Treatment CentersAddiction treatmentShore Capital PartnersBrightViewVA, OH, KY, DE
PresenceLearningSchool-based behavioral health, teletherapySpectrum Equity, The Rise Fund n/a 

BayMark Health Services, which is owned by private equity firm Webster Equity Partners,[6] acquired Riverwood Group and Granite Recovery Centers. Riverwood Group is a medication assisted treatment (MAT) provider operating in Arkansas, Florida, Illinois, Indiana, Kansas, Nebraska and South Dakota.[7]  Granite Recovery Centers is a New Hampshire-based addiction treatment provider.[8]

BayMark is the largest provider of Opioid Use Disorder (OUD) services in North America, with more than 300 addiction treatment facilities in 35 states and three Canadian provinces.[9] Webster Equity created BayMark as a platform company in 2015 by buying and merging BAART Programs and MedMark Services, and has since made numerous acquisitions of smaller regional addiction treatment providers.[10]

The outsized returns targeted by private equity investors over relatively short periods of time pose risks to quality of care at private-equity-owned behavioral health providers. Risks may include inadequate staffing or reliance on untrained and unlicensed staff, pressure on providers to provide unnecessary and costly services, or abuse of federal funding programs at the expense of patient care.[11]

See our report: Understaffed, Unlicensed, and Untrained: Behavioral Health Under Private Equity

December Private Equity Buyouts

CompanyTypePE Firm
FullBloomBehavioral healthAmerican Securities
Community Medical ServicesBehavioral healthFFL Partners, Two Sigma Investments
PresenceLearningBehavioral health, telehealthSpectrum Equity, The Rise Fund
BioAgilytix LabsBiopharmaceuticalsCinven, Cobepa, Caledonia Private Capital
TTG Imaging SolutionsDiagnostic imagingSentinel Capital Partners
Allergy PartnersENT servicesWayPoint Capital Partners
Client Network ServicesHealth techThe Carlyle Group
PracticeTek SolutionsHealthare investingLightyear Capital, Audax Group and Greater Sum Ventures
WillowWood GlobalMedical devicesBlue Sea Capital
SeqensPharmaceuticalsSK Capital Partners, Ardian, Mérieux Equity Partners, Bpifrance, Eximium, Caisse des Dépôts Group
Alliance Physical Therapy PartnersPhysical therapyBeecken Petty O’Keefe & Company
Office AllyPractice management servicesFrancisco Partner
EMS Management and ConsultantsRevenue cycle managementBV Investment Partners
South Bay PartnersSenior housingHarbert Management
UrgentMEDUrgent careQuilvest Private Equity

December Add-On Acquisitions

CompanyTypePE FirmPlatform Company
Secure Exchange SolutionsHealth techABRY Partners, Riverside Credit Solutions, Silversmith Capital Partners, SV Health InvestorsCentauri Health Solutions
Masy BioservicesBiopharmaceuticalsAmpersand Capital Partners, Ares Capital Corporation BDC, Madison Dearborn PartnersAlcami
Ascential CareManaged care organizationAres Management, Auburn Hill Capital, BDT Capital Partners, Blackstone, Blackstone Credit, Harvest Partners, MidCap Financial, Partners GroupAcrisure
Cyan HealthHealthcare consultingArsenal Capital PartnersPharma Value Demonstration
OmniSYSHealth techAvista Capital Partners, Constitution Capital PartnersXIFIN
Pivot Health SolutionsPhysical therapyBDT Capital PartnersAthletico Physical Therapy
WellframeHealth techBlackstoneHealthEdge
Exemplar ResearchClinical trialsCentre PartnersThe IMA Group
Bonney Lake Physical Therapy & Hand RehabPhysical therapyChurchill Asset Management, Gryphon InvestorsPhysical Rehabilitation Network
Lyophilization Services of New EnglandPharmaceuticalsChurchill Asset Management, Kohlberg & Company, Mubadala Development CompanyPCI Pharma Services
Workwell Occupational MedicineOccupational healthClearview CapitalMBI Industrial Medicine
HealthCare SupportStaffingCornell Capital, Trilantic North America Ingenovis Health
Omeros (Omidria Franchise)Medical suppliesCVC Capital Partners Rayner Group
Homestead HospiceHospiceDorilton CapitalTraditions Health
Andrews Sports Medicine & Orthopaedic CenterOrthopaedicsFFL Partners, Thurston GroupMississippi Sports Medicine and Orthopaedic Center
Moberly Family DentistryDentalFive Points Capital, Thurston GroupGen4 Dental Partners
Health FidelityHealth techFrancisco Partners, TA Associates ManagementEdifecs
Digestive Care PhysiciansGastroenterologyFrazier Healthcare PartnersUnited Digestive
Gastroenterology Associates of Southwest FloridaGastroenterologyFrazier Healthcare PartnersUnited Digestive
Frontida BiopharmBiopharmaceuticalsFrazier Healthcare Partners, Thomas H. Lee PartnersAdare Pharma Solutions
CueSquaredHealth techFrontier GrowthAccessOne
Remarkable HealthHealth techGI Partners, TA Associates ManagementNetsmart Technologies
Loving Hands HospiceHospiceGranite Growth Health Partners, Health Velocity Capital, Petra Capital PartnersThree Oaks Hospice
Select Home Health ServicesHome healthGrant Avenue CapitalValeo Home Healthcare
Medicom Health InteractiveHealth techH.I.G. CapitalEruptr
ABA ToolsBehavioral healthInsight PartnersCentralReach
Protein MetricsHealth techInsight PartnersGraphPad Software
InSync Healthcare SolutionsHealth techMartis Capital, Warburg PincusQualifacts Systems
Beaver Dam Eye CareEye careMonarch Alternative CapitalShopko Eyecare Center
Atlanta Addiction Recovery CenterBehavioral healthNautic PartnersPyramid Healthcare
The BluffBehavioral healthNautic PartnersPyramid Healthcare
South Sound Behavior TherapyBehavioral healthNew MainStream CapitalCenter for Social Dynamics
Dr. Pimple PopperDermatologyOMERS Private Equity, PenfundForefront Dermatology
HomeCare ConnectHome healthOMERS Private Equity, Summit PartnersParadigm Outcomes
Beacon Dental HealthDentalRegal Healthcare Capital Partners, The Jordan CompanyDental365
Roller Weight Loss & Advanced SurgerySurgery centersSentinel Capital PartnersSSJA Bariatric Management
Becker Eye Care CenterEye careSheridan Capital PartnersAtlantic Vision Partners
MidAtlantic Eye CareEye careSheridan Capital PartnersAtlantic Vision Partners
Right Path Addiction Treatment CentersBehavioral healthShore Capital PartnersBrightView
Dyad LabsLaboratory servicesSofinaMerieux Nutrisciences
Bridget Burris DDSDentalSurge Private EquityAccess Dental Management
The RND GroupHealth techSverica Capital ManagementGener8
Discover Vision CentersEye careThe Firmament GroupVision Integrated Partners
In Vitro ADMET LaboratoriesFertilityWater Street Healthcare PartnersDiscovery Life Sciences
Granite Recovery CentersBehavioral healthWebster Equity PartnersBayMark Health Services
Riverwood GroupBehavioral healthWebster Equity PartnersBayMark Health Services
ORM FertilityFertilityWebster Equity PartnersPinnacle Fertility
Interim HealthCare of Sacramento HospiceHome health, hospiceWellspring Capital ManagementInterim HealthCare

[1]https://files.pitchbook.com/website/files/pdf/PitchBook_Analyst_Note_Established_Private_Equity_Healthcare_Provider_Plays.pdf#page=1 pg. 10.

[2]https://files.pitchbook.com/website/files/pdf/PitchBook_Analyst_Note_Established_Private_Equity_Healthcare_Provider_Plays.pdf#page=1 pg. 13.

[3]https://fullbloom.org/2020/01/20/catapult-learning-unveils-new-parent-company-brand-fullbloom/

[4]https://www.american-securities.com/en/companies/fullbloom

[5]https://pestakeholder.org/report/american-securities-big-bet-on-prison-phone-calls/

[6]https://websterequitypartners.com/portfolio/baymark/

[7]https://www.prweb.com/releases/baymark_acquires_riverwood_group_llc_opioid_treatment_programs/prweb18411131.htm

[8]https://www.eagletribune.com/news/granite-recovery-centers-acquired-by-national-provider/article_2f14c638-6a74-11ec-8981-bbe8fa6ef173.html

[9]https://www.prweb.com/releases/baymark_acquires_riverwood_group_llc_opioid_treatment_programs/prweb18411131.htm

[10]https://webcache.googleusercontent.com/search?q=cache:EkDVvmi9T_sJ:https://www.pehub.com/webster-shelves-baymark-auction-eyes-further-growth/+&cd=3&hl=en&ct=clnk&gl=us

[11]https://pestakeholder.org/wp-content/uploads/2020/09/PESP-behavioral-health-9-2020.pdf

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