Transactions: Medical Properties Trust’s $950M Springstone Deal; Acorn’s Latest ABA Acquisition

Medical Properties Trust announces $950M Springstone deal

Medical Properties Trust (NYSE: MPW) has entered into a definitive agreement to acquire 18 inpatient behavioral health hospital facilities and an interest in the operations of Springstone from the PE firm Welsh, Carson, Anderson & Stowe.

The deal has a price tag of $950 million, with $760 million for the facilities and $190 million for the operating interests, according to a press release announcing the news. Plus, it comes about two months after rumors leaked that Welsh, Carson, Anderson & Stowe was looking to sell Springstone.

Medical Properties Trust is a real estate investment trust (REIT) formed in 2003 to acquire and develop net-leased hospital facilities. To date, it is one of the world’s largest hospital owners, with 442 facilities in nine counties on a pro forma basis.

Meanwhile, Louisville, Kentucky-based Springstone has more than 30 outpatient locations and 18 inpatient locations across nine states. It treats a number of behavioral health conditions at its facilities.

Under the deal, the hospitals, as well as others Springstone expects to develop and acquire, are expected to be master leased pursuant to terms anticipated to provide a GAAP-basis yield exceeding 9.0% and lease payment coverage of approximately 1.75 times in the near-term. Additionally, the lease is expected to include an initial 20-year term with CPI-based annual rent escalators subject to a 2% floor, according to the press release.

The transactions are expected to close in the second half of 2021, with the same senior management team expected to continue to lead Springstone.

“The Springstone investments give MPT a major presence in the rapidly expanding United States behavioral health care market, which has been underserved in our society despite importance on the same level as acute and post-acute care hospitals,” Edward K. Aldag, Jr. — Medical Properties Trust’s Chairman, President, and CEO — said in the press release. “MPT’s acquisition of the 18 purpose-built inpatient facilities, much like our recent investment in the Priory portfolio in the United Kingdom, appropriately targets the highest level of acuity within the behavioral care continuum, and we believe that our investment in the operating company will result in additional attractive real estate opportunities.”

Onex Partners to acquire Newport Healthcare

Onex Partners — a private equity platform of the investment manager Onex Corporation — has agreed to acquire the teen-focused behavioral health company Newport Healthcare in partnership with the company’s management team, according to a press release announcing the news.

Terms of the deal, under which Onex Partners will become a majority investor in Newport, were not disclosed.

Newport operates a network of mental health centers for teens and young adults. Its offerings include residential treatment, partial hospitalization and intensive outpatient programming. It uses a family-based approach to care and also offers gender-specific programming.

The transaction is expected to close in the third quarter of 2021, according to the press release.

Acorn Health acquires LEAP Behavioral Analysis

Acorn Health, a national provider of applied behavior analysis (ABA) therapy, has purchased substantially all of the assets of LEAP Behavior Analysis, formerly known as JKP Analysts.

Terms of the deal were not disclosed.

Founded in 2018, Acorn is a portfolio company of the private equity firm MBF Healthcare Partners. It provides center-based and in-home ABA therapy services to children with autism and has locations in Michigan, Illinois, Virginia, Florida, Maryland, Pennsylvania and Tennessee.

Meanwhile, LEAP has two clinics in Tennessee, one in Cookeville and one in Cleveland, where it provides ABA therapy.

Under the deal, LEAP is now a wholly-owned subsidiary of Acorn Health of Tennessee and will operate under the Acorn brand, according to a press release announcing the news.

“Tennessee is a very important market for us, and the addition of the LEAP team will allow us to deliver best-in-class ABA services to more families in need in the Cookeville and Cleveland areas,” Acorn CEO Vicki Kroviak said in the press release. “We believe this partnership will help further our goal of increasing access to ABA therapy for families in need.”

The deal comes just a couple months after Acorn acquired the assets of Orlando, Florida-based Sandcastle Centers, which was also formerly known as JKP Analysts.

Refresh Mental Health buys Carolina Behavioral Care

Refresh Mental Health has purchased Carolina Behavioral Care (CBC) in an acquisition closed April 21, according to Generational Equity, a mergers and acquisitions firm that served as a sell-side advisor on the deal.

Terms of the transaction were not disclosed.

Headquartered in Jacksonville Beach, Florida, Refresh partners with specialized behavioral health organizations to provide financial backing, business operations and marketing support to leaders. It is the parent company of more than 250 locations across 28 states. Those locations include outpatient substance use disorder (SUD), eating disorder and mental health treatment centers.

Meanwhile, CBC is a multi-site psychiatric practice headquartered in Pinehurst, North Carolina. It has clinics in Durham, Pinehurst and Hillsborough.

The news comes after Kelso & Company, a North American-focused middle market private equity firm, acquired a majority stake in Refresh Mental Health back in December.

Psychedelics company Delic to acquire Ketamine Infusion Centers LLC

Delic Holdings Inc., a Canadian psychedelic wellness platform, has signed a definitive agreement to acquire Ketamine Infusion Centers LLC (KIC), which has two ketamine infusion treatment clinics in the U.S.

The purchase price for the transaction was $3.05 million, according to a press release announcing the news.

Delic is publicly traded on the Canadian stock exchange. It has a hub of psychedelic education, media and information properties, as well as a licensed lab and IP company. Meanwhile, the deal expands its offerings to include “the ability to provide patients with psychedelic therapy.”

Meanwhile, it currently has two facilities, one in Phoenix, Arizona, and the other in Bakersfield, California.

The deal gives Delic a physical footprint of four locations across two states, with six new medical professionals and employees from KIC joining the team.

“We publicly listed DELIC with the intent of buying cash-flowing, scalable companies and that is exactly what KIC represents,” Matt Stang, founder and CEO of Delic said in the press release. “We are focused on making psychedelic wellness truly accessible, and this is a huge development in the realization of that vision.”

TCV invests in Kipu

Kipu — which makes KipuEMR, an electronic medical records (EMR) system for substance use disorder (SUD) treatment organizations and other behavioral health providers — has snagged a new strategic investment from the growth equity firm TCV.

Terms of the investment were not disclosed.

TCV invests in high-growth companies in the tech market. Meanwhile, Kipu provides enterprise software and cloud-based tech to SUD, mental health, and eating disorder treatment providers.

“Kipu is the category leader with tremendous momentum,” TCV General Partner Nari Ansari and a member of the Kipu board of directors said in a press release announcing the news. “The company’s suite of software applications intelligently leverages data in all phases of patient care, enabling behavioral healthcare providers to improve patient outcomes and drive operational efficiencies. Kipu gives caregivers on the front lines the capabilities they urgently need to care for patients, while also helping their organizations succeed. We look forward to supporting the Kipu team as they help a growing number of client partners manage the entire patient life cycle.”

Patient Access Solutions buys Tela Mental Health LLC

Patient Access Solutions — a financial processing and management solutions provider for the health care industry — has acquired Tela Mental Health LLC — a remote, member-based behavioral health provider that offers unlimited sessions to members.

Financial terms of the deal were not released.

For $29.95, Tela Mental Health LLC offers patients unlimited access to its services, which include therapy and medication prescribing.

MAP Health Management buys CARMAhealth

MAP Health Management, LLC., which offers virtual peer support services, has acquired CARMAhealth, a provider of primary and psychiatric care to people with SUD.

Terms of the deal were not disclosed.

MAP uses telehealth to deliver on-demand peer support services to people battling SUD and other behavioral health conditions. In addition to tech-enabled peer support, MAP also provides solutions for improved engagement and outcomes reporting.

Meanwhile, Austin, Texas-based CARMA provides multi-disciplinary, integrated care across Texas, Florida, Virginia, and Tennessee. Its model combines virtual and face-to-face primary care and medical behavioral health services. CARMA is an acronym for Collaborative Addiction Recovery Management and Assistance.

As a result of the deal, MAP’s peer-led support services will expand to include other services to add additional value and support partnerships with behavioral health providers and payers. MAP’s provider partners in certain markets will also have access to “medical director services including 24/7 on-call services and telepsychiatry,” according to a press release.

“Mental health and substance misuse issues are at an all-time high across our country. It’s core to our mission to continue to evolve and create the nation’s leading peer-led behavioral health home. The acquisition of CARMA will allow us to reach and help tens of thousands more people who really need it,” MAP founder and CEO Jacob Levenson said in the press release.

Meanwhile, CARMAhealth founder and Chief Medical Officer Carlos Tirado said the deal will help improve access and outcomes for patients with SUD.

“We are excited to join MAP and deeply integrate peer support services as a standard of care into our collaborative addiction recovery management model,” he said in the press release. “This is the next step in providing comprehensive support for people with SUD and other behavioral health problems.”