Transactions: Bain-Backed Broadstep Acquires Youth Treatment Provider; Summit BHC Expands in Virginia

Broadstep purchases youth-focused behavioral operator

Raleigh, North Carolina-based Broadstep Behavioral Health — a provider of community and residential services to individuals with intellectual and developmental disabilities (IDD), as well as behavioral health conditions — has announced its acquisition of the South Carolina-based residential treatment provider Excalibur Youth Services.

Terms of the deal were not disclosed.

Founded in 1972, Broadstep operates more than 90 facilities across four states. The provider was previously based in Wisconsin before relocating to North Carolina last year. Broadstep is a portfolio company of Bain Capital’s Double Impact Fund.

Meanwhile, Excalibur was founded in 1989 as Avalonia Group Homes and operates six treatment facilities in South Carolina, as well as a group home in Hendersonville, North Carolina.

The goal of the transaction is to bring a broader set of services to individuals in the Carolinas, according to the press release.

Canadian psychedelic wellness companies team up

Two Canadian behavioral health companies have announced plans to team up. Mind Cure Health has signed a non-binding letter of intent to take an ownership stake in ATMA Journey Centers.

Mind Cure plans to make an initial $500,000 investment in ATMA, according to a press release announcing the news. Additionally, the company intends to participate in ATM’s future financing.

Based in Vancouver, Mind Cure is a health and wellness company that specializes in psychoactive, psychotropic and nontropic treatments for mental illnesses. The company is publicly traded company on the Canadian Securities Exchange.

ATMA, which is based in Calgary, Alberta, is a psychedelic medical treatment provider. It’s the first private sector Canadian company to be granted federal approval to administer psilocybin to patients in psychedelic-assisted therapy. Psilocybin is a hallucinogen derived from certain types of mushrooms ingested during the therapeutic process.

Summit BHC acquires two Virginia behavioral health providers

Summit BHC — a private equity-backed behavioral health and addiction treatment provider — has acquired two Williamsburg, Virginia-based behavioral health facilities, The Pavilion and The Farley Center.

Terms of the acquisitions were not announced.

The Pavilion is a 66-bed inpatient psychiatric facility with adult and geriatric beds, while The Farley Center is a 70-bed facility providing services for substance use detox, rehab and partial hospitalization. The Farley Center also provides outpatient services.

Both facilities are located on a 9.1 acre campus. The property was previously owned by Diamond Health Care of Williamsburg, according to James City County records reported by The Virginia Gazette.

As a result of the deals, Summit BHC now owns and operates 24 facilities nationwide. Lee Equity Partners and FFL Partners have controlling stake in the company, which is headquartered in Franklin, Tennessee.

Caron Treatment Centers buys Florida apartment complex

Caron Treatment Centers has purchased a 46-unit apartment complex in Delray Beach, Florida, where it has operated a residential addiction treatment program for more than a decade, according to the real estate news site The Real Deal

Caron’s new three-acre property sits next to the Delray Beach Golf Club and was purchased for $12 million, according to records reported by The Real Deal. The seller of the property was identified as Yonkers, New York-based AVR Realty Company.

Headquartered in Wernersville, Pennsylvania, Caron is a not-for-profit substance use disorder (SUD) treatment provider. It serves clients across Pennsylvania, Florida, Philadelphia, Washington, D.C., Atlanta and New York City. It offers targeted programming for special populations, in addition traditional service offerings.

Palm Beach County, Florida last year approved a bond measure for Caron to buy and renovate the complex, where it has been operating an addiction treatment program since at least 2007, The Real Deal reported.