KKR-backed autism therapy provider BlueSprig Pediatrics has acquired Lakewood, Colorado-based Trumpet Behavioral Health.
The deal, announced on Wednesday, also includes Trumpet Behavioral Health’s sub-brands, Therapeutic Pathways and The Behavior Center. BlueSprig purchased Trumpet from New York City-based WindRose Health Investors, which acquired the company in 2017.
The terms of the deal were not announced. Trumpet Behavioral Health operates 37 locations in seven states, according to its website. Before the deal, BlueSprig Pediatrics, headquartered in Houston, Texas, operated 137 centers in 15 states.
Both companies offer outpatient services for autism spectrum disorders, chiefly applied behavior analysis (ABA).
The deal represents one of the largest M&A deals in the autism therapy space in 2023. Several headwinds, notably high interest rates and inflation, have made buying and selling companies more difficult. These and other factors seen in previous years have led to a behavioral health deal volume slowdown.
“Joining the BlueSprig Family is a remarkable step forward for our organization,” Josh Sleeper said in a blog post. Formerly Trumpet Behavioral Health’s CEO, he is now COO at BlueSprig Pediatrics. He took on the CEO spot at Trumpet in 2022.
Trumpet Behavioral Health said in the blog post that the deal will enhance service offerings, increase reach to underserved communities and deepen workforce initiatives at the combined company.
Underserved communities, many of which receive autism therapy services via Medicaid, are increasingly difficult for providers to reach. A handful of states, notably Colorado and Indiana, have seen several autism therapy providers cut down on services or speak out because of low Medicaid rates.
KKR, a major New York City investment and finance firm, formed BlueSprig Pediatrics in 2018 in partnership with then-CEO Keith Jones. Today, Jason Owen leads BlueSprig Pediatrics. f
“This is a partnership with a talented and devoted team that aligns with our mission,” Owen said in the blog post.