Transactions: Discovery Behavioral Health Expands Family of Brands; Three Providers Buy into New States

Discovery Behavioral Health acquires Prosperity Wellness Center  

Discovery Behavioral Health — PE-backed network of behavioral health centers — has acquired Prosperity Wellness Center — a 40-bed residential SUD treatment facility in Tacoma, Washington.

Financial terms of the transaction were not announced.

Headquartered in Orange County, California, Discovery is a portfolio company of Webster Equity Partners. It has more than 100 treatment centers across 12 states.

Prosperity is the tenth brand name Discovery has added to its family of brands, according to a press release announcing the news. The facility will supplement four other treatment centers Discovery operates in the state of Washington through Associated Behavioral Health Care, or ABHC, which the company acquired last year. 

Odyssey Behavioral Healthcare acquires Shoreline Center for Eating Disorder Treatment

Odyssey Behavioral Healthcare has acquired Shoreline Center for Eating Disorder Treatment.

Financial terms of the deal were not disclosed.

Formed in 2015 and headquartered in the Nashville area, Odyssey has more than 20 locations across eight states. The private equity-backed provider offers the continuum of care to patients with eating disorders, psychiatric conditions, substance use disorders (SUD) and technology addictions.

Meanwhile, Shoreline was founded in 1995 and has multiple locations across Southern California. It serves both adults and adolescents with eating disorders, providing services such as residential treatment, partial hospitalization and intensive outpatient care.

Seaside Healthcare purchases Virginia behavioral providers

Seaside Healthcare has acquired two Virginia behavioral health providers, Second Chances Comprehensive Services and Simple Intervention.

Financial terms were not announced for either transaction.

Backed by the PE firm Pharos Capital and headquartered in Shreveport, Louisiana, Seaside is a behavioral health provider with programs across Louisiana, North Carolina, South Carolina, Georgia and Texas. And with these two purchases, it will also enter Virginia.

Second Chances provides mental health and SUD services out of multiple centers across the state, while Simple Intervention serves patients in central Virginia specifically.

Summit BHC acquires Seabrook

Summit BHC has expanded into New Jersey with its recent acquisition of Seabrook, an inpatient SUD treatment provider. The deal marks Summit BHC’s first in the state.

Financial terms were not disclosed.

Headquartered in Franklin, Tennessee, Summit BHC has more than 20 centers across 16 states. Lee Equity Partners and FFL Partners have controlling stake in the company.

Meanwhile, Seabrook is located in Bridgeton, New Jersey. It has 153 beds at its inpatient treatment facility and also operates three intensive outpatient programs in Cherry Hill, Morristown and Shrewsbury.

Landmark Recovery adds Las Vegas location

With the help of capital from Wellness Real Estate Partners (WREP), Landmark Recovery has acquired the real estate previously owned by Las Vegas Recovery Centers to open its first Las Vegas treatment site.

Terms of the acquisition deal — Landmark’s first in the SUD space — were not released. 

Founded in 2016, Landmark is an SUD provider that currently owns and operates six other SUD treatment centers across Oklahoma, Indiana and Kentucky. WREP is a private real estate company that invests in properties leased to behavioral health companies.

Landmark of Las Vegas will offer residential treatment, detox, partial hospitalization, intensive outpatient, group and individual therapy sessions and other services. It has the capacity to house 96 patients at a time, according to a press release announcing the news.

In addition to adding this location in Dec. 2020, Landmark is on track to add an additional 10 new sites in 2021, according to the press release.

“We are focused on geographical locations that don’t have access to addiction treatment,” Landmark Recovery CEO Matt Boyle said in the press release.

BrightView Health buys Renew Recovery Centers

BrightView Health — an outpatient SUD treatment provider with 28 locations across Ohio — has acquired Renew Recovery Centers — a Kentucky-based SUD company with four locations. 

Financial details of the transaction were not disclosed.

Both providers offer medication-assisted treatment (MAT), counseling, peer recovery support and wraparound social support services. Given those synergies, leaders from both companies believe the transition will be seamless and lead to more patients getting the SUD treatment they need, according to a press release announcing the news.