Transactions: Acadia’s Latest Deal; New ABA Acquisitions

Acadia to purchase Adventist Health Vallejo’s behavioral services 

Adventist Health Vallejo — a 61-bed psychiatric facility — has signed a definitive agreement to sell the hospital and its behavioral health services to Acadia Healthcare (NASDAQ: ACHC) — one of the nation’s largest behavioral health providers.

Financial terms of the deal were not disclosed.

Based in Vallejo, California, Adventist Health Vallejo is operated as part of Adventist Health St. Helena. It provides inpatient and outpatient care, with services including short-term psychiatric care for all ages, as well as partial hospitalization for adults. Adventist Health recently expanded its behavioral health offering via “a partnership investment with Synchronous Health that leverages the power of human connection with AI to deliver behavioral healthcare to millions of people,” according to a press release announcing the news.


Meanwhile, Acadia is the nation’s largest standalone behavioral health company. It operates 227 behavioral healthcare facilities across 40 states and Puerto Rico. 

The deal with Adventist Health Vallejo is expected to close in mid-2021, pending regulatory approval, according to the press release. 

News of the transaction comes following speculation that Acadia could become more active on the acquisition front this year after divesting its UK facilities. In recent years, Acadia’s deal pipeline has been somewhat quiet. 


“That [UK sale] cleans up Acadia’s balance sheet,” Burk Lindsey — managing director in the health care investment banking group at Raymond James & Associate — said during a recent Behavioral Health Business webinar. “Our sense is that they will likely be dipping their toe back in the water.”

Modern Health acquires mental health startup Kip

Modern Health, a global comprehensive mental health and wellness platform, has announced its purchase of the mental health startup Kip.

Terms of the deal were not announced.

Modern Health offers users access to well-being assessments, self-service wellness kits, certified coaches and licensed therapists, all available in a single app. Meanwhile, Kip combines therapy with a mobile app that allows patients to track and monitor their mental health journey. Both companies are based in San Francisco and work with employers. Additionally, Kip offers individual services.

Founded in 2017, Modern Health has raised more than $95 million from investment firms to date, with some of those including Afore Capital, Battery Ventures, Felicis Ventures, Founders Fund, Kleiner Perkins, and 01 Advisors. Today, it supports more that 200 enterprises globally.

Modern Health’s acquisition of Kip will allow the company to better track and analyze to create more meaningful, personalized care plans, according to a press release announcing the news.

As part of the deal, Kip co-founder and CEO Ti Zhao will join Modern Health’s product development team “to further expand the company’s suite of mental health solutions and analytics,” according to the press release.

Centra Capital buys CM Counsel

Centra Capital, a Philadelphia-based investment firm specializing in the acquisition and growth of lower middle market healthcare companies, has purchased CM Counsel, a King of Prussia, Pennsylvania-based outpatient behavioral health provider.

Terms of the transaction were not disclosed.

CM Counsel, which opened in 1998, operates three centers in the Philadelphia-area and employs more than 40 practitioners.

As part of the purchase, CM Counsel will retain its brand name. Centra Capital will also establish a separate management company — CM Counsel Management, LLC — to oversee responsibility for CM Counsel’s operations, finances and marketing initiatives.

Overall, Centra Capital’s goal is to expand CM Counsel’s staff and upgrade its infrastructure to improve delivery of therapy and behavioral health services, according to a press release announcing the news.

“We will invest to expand services and market reach as the pandemic has created a mental health crisis unlike anything we have seen in our lifetimes,” Jordan Klear, Managing Director of Centra Capital, LLC, said in the press release.

HMP Global purchases behavioral education assets from C4 Recovery

HMP Global — a Malvern, Pennsylvania-based health care education and events company — has entered into a definitive agreement to purchase assets from C4 Recovery Foundation, an Algonquin, Illinois-based nonprofit provider of behavioral health and substance use disorder (SUD) educational resources for health care stakeholders.

Terms of the deal were not announced.

As part of the deal, HMP will purchase two annual addiction awareness events operated by C4 — the Cape Cod Symposium on Addictive Disorders (CCSAD), which takes place every September, and the West Coast Symposium on Addictive Disorders (WCSAD), which occurs every June. HMP will also purchase various digital behavioral resources from C4.

Lighthouse Autism Services acquires Access Behavioral Analysis

South Bend, Indiana-based Lighthouse Autism Services has announced its acquisition of Indianapolis-based Access Behavioral Analysis.

Terms of the deal were not disclosed.

The transaction will make Lighthouse Indiana’s largest provider of applied behavioral analysis (ABA) services, which is largely considered the gold standard of autism care.

Founded in 2012, Lighthouse operates ABA therapy centers throughout Indiana and southwestern Michigan. Meanwhile, Access Behavioral Analysis operates four centers in Indianapolis and surrounding areas.

ReThink First purchases wellness training platform Whil

ReThink First, a technology platform that provides behavioral health treatment tools to a variety of stakeholders, has purchased Whil, a mindfulness and mental wellness training platform.

Terms of the deal were not announced.

Based in New York, ReThink First serves families, educators and behavioral health care providers. The company is backed by the private equity (PE) firm K1 Investment Management LLC, and its clients include more than 25 Fortune 100 companies, as well as the US Department of Defense, Managed Care, Medicaid and thousands of others.

Meanwhile, Whil provides enterprise solutions to more than 250 customers worldwide with its science-based training platform.

As a result of the deal, the combined company will offer an “unmatched depth and breadth of digital well-being solutions for our clients,” Whil CEO Joe Burton said in a press release announcing the news.

Proud Moments buys New Mexico ABA provider

Proud Moments ABA, a Brooklyn, New York-based provider of ABA services, has announced its purchase of Bridges: Educational Services for Children with Autism, a central New Mexico ABA provider.

Edgemont Partners, a health care M&A and financial advisory firm, served as the exclusive advisor to Proud Moments on the transaction, the terms of which were not disclosed.

Proud Moments, which is owned by Audax Private Equity, provides services to individuals in eight states, which are primarily located in the mid-Atlantic and the Southeast. Meanwhile, Bridges services children in central New Mexico.

The deal strengthens Proud Moments’ presence in the Southwest and accelerates Bridges’ mission to help historically underserved communities, according to a press release announcing the news.

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