Private equity firm Revelstoke Capital Partners has closed on its acquisition of eating disorder operator Monte Nido & Affiliates for an undisclosed sum, following rumors about the deal last month.
Founded in 1996, Monte Nido has five brands and 45 facilities in 15 states. The provider’s main demographic is women aged 14 to 28. The Miami, Florida-based provider offers inpatient, residential, partial hospitalization and intensive outpatient care.
The new investment is expected to help the operator grow organically and through M&A.
“The financial and operational resources from this new partnership will be used to further support our rapid growth by facilitating acquisitions and the development of new facilities,” Candy Henderson, CEO of Monte Nido, said in a statement. “We look forward to working together to deliver high quality eating disorder services to even more patients.”
Monte Nido has a history of M&A. In 2021, it announced its acquisition of Massachusetts-based Walden Behavioral Care. The provider treats eating disorders and psychiatric conditions.
This news comes after reports circulated in October of 2021 that Monte Nido’s previous owner, PE firm Levine Leichtman Capital Partners LLC, was looking to sell the company. At the time, PEHub.com reported the sales price of $1 billion.
“The increase in demand for eating disorder services continues to accelerate along with our nation’s overall mental health care needs,” Andrew Welch, partner at Revelstoke, said in a statement. “By providing the necessary capital, resources, and expertise, Revelstoke will help accelerate the Company’s mission of providing high-quality eating disorder treatments to communities across the nation.”
Eating disorders impact roughly 5.48 million people in the U.S. each year, according to a Deloitte report. The financial burden associated with eating disorders is $64.7 billion in the U.S. each year, according to the report.
This isn’t Revelstoke’s first acquisition in the behavioral health market.
In January, the firm joined forces with Canadian-based Caisse de dépôt et placement du Québec (CDPQ) to recapitalize addiction provider Crossroads Treatment Centers.
Additionally, in 2020, the firm invested in outpatient psychiatric service provider Family Care Center, which focused on providing care to members of the U.S. military and veterans.
Other Revelstoke portfolio companies include Accelecare, ClareMedica and Encore Rehabilitation.
The Denver-based Revelstoke has about $4.8 billion of assets under management. Since the firm’s inception in 2013, it has completed 165 acquisitions.
A number of digital-first eating disorder providers are also making their way onto the market. For example, Equip, which specializes in virtual family-based treatment, raised $58 million in Series B funding. This brought the company’s total raise to $75 million.
Additionally, Arise, a digital eating disorder provider, scored $4 million in funding over the summer.