Behavioral health operator Turnbridge is in talks to sell, touting about $15 million of EBITDA.
Turnbridge, which provides mental health and substance use disorder (SUD) care, is pursuing a sale of the company, according to Axios. Investment banking firm Raymond James was hired to lead the sale, sources say.
New Haven, Connecticut-based Turnbridge offers gender-specific inpatient and outpatient programs for children aged 14 to 17 and young adults with SUDs, mental health conditions, or eating disorders in at least four Connecticut locations. It also offers an intensive outpatient after-school program for teens aged 14 to 17.
The company received an undisclosed amount of seed funding from North Castle Partners in 2015, according to Crunchbase. Stonehenge Capital invested in Turnbridge in 2020, also for an undisclosed amount.
Potential buyers, “likely” a private equity firm, will use Turnbridge’s payer mix to determine valuation, Axios reported.
The behavioral health provider accepts insurance from Anthem Blue Cross, UnitedHealthcare and Optum plans to cover a portion of the treatment costs.
“Turnbridge is an innovator and leader in the addiction treatment field with an industry-recognized program that allows clients to develop life skills and independence at their own pace with lower likelihoods of relapse upon completion,” Jared Talisman, then-director of Stonehenge Capital, said in a statement. “We were impressed that the majority of clients who finished the program experienced significant physical and mental health improvements, better interpersonal relationships and overall self-sufficiency.”
The company claims to be among the first behavioral health programs in the United States to “eliminate arbitrary lengths of stay.” Instead, Turnbridge uses a three-phased treatment program to create a more personalized care plan. Patients do not move on to the next phase until they reach treatment goals for the current phase.
Turnbridge launched a notable billboard campaign in 2019 in response to a billboard posted by Weedmaps, a site that connects users to marijuana dispensaries and online ordering. Weedmaps’ billboard, located on I-91 in New Haven, read “Weed is legal in 60 miles.” Turnbridge posted a billboard of its own a short distance from Weedmaps’, reading, “Addiction treatment is closer.”
The potential deal comes at an ideal time for well-capitalized companies to sell.
“[There is an] interesting buying opportunity where multiples are actually at a reasonable price and you don’t have a lot of competition for deals,” Christian Chauvet, a partner at Lee Equity, told Behavioral Health Business in October of 2023.
New York-based Lee Equity is a middle-market PE firm and veteran in the behavioral health space.
Turnbridge declined to comment on this matter. North Castle, Stonehenge and Raymond James did not respond to BHB’s requests for comments.