Regard Recovery LLC announced its acquisition of JourneyPure LLC on Wednesday.
Both organizations provide mental health and addiction treatment services. Regard Recovery is based in Florida while JourneyPure is based in Tennessee.
Terms of the deal were not disclosed. Regard Recovery pursued the deal for continued growth and synergies, according to a representative of the company.
“The acquisition made sense for Regard Recovery for a number of reasons — not the least of which is their focus on clinical quality as well as their geographic footprint [overlapping] with some of our existing operations,” Brett McGennis, chief operating officer of Regard Recovery and new CEO of JourneyPure, told Behavioral Health Business. “Finally, JourneyPure was in two states we are very familiar with at Regard and are still ravaged by the opioid epidemic: Tennessee and Kentucky.
“The facilities of JourneyPure are top-notch and they offer significantly more treatment options than their peers.”
JourneyPure will keep its brand identity and will operate within the Regard Recovery family of companies, McGennis said
The combined company treats over 3,500 patients annually and operates five inpatient treatment centers and 19 outpatient centers. McGennis said that the company plans to add 15 new outpatient centers in 2022.
JourneyPure was founded in 2014 and operates 17 residential and outpatient facilities in Florida, Kentucky and Tennessee.
Regard Recovery operates in Florida, New Jersey, Pennsylvania and West Virginia.
In December 2020, a Florida bankruptcy court approved the sale of an addiction treatment center called Destination Hope to Regard Recovery LLC for $4.8 million. Eli Schwarcz, founder of Regard Recovery and a co-founder of New Jersey-based Jade Capital Group LLC, acted as the principal in the sale.
The merger was funded by a collection of independent investors. JourneyPure was previously owned by a collection of private equity groups, McGennis said.
Regard Recovery said in a news release that it credits Charles Adams, president of inpatient services and chief marketing officer, with guiding the turnaround.
McGennis also said that the company was so impressed with the clinical programming of JourneyPure that it retained its Chief Clinical Officer Dr. Brian Wind, calling the move to retain him an “acqui-hire.”