PE buyers pay $1.4B for behavioral health-care provider

DENVER — Trade journal Behavioral Health Business reports that Apax Funds and Oak HC/FT bought Denver-based Eating Recovery Center LLC for $1.4 billion.

According to its website, the provider of behavioral health services focused on eating disorders has 20 locations in six states, including four in Denver. Private equity-focused publications had said ERC will earn $91 million in 2021 before interest, taxes, depreciation and amortization.

Investor interest in the industry has grown lately with hospital mergers, mental health buying by KKR & Co. Inc. (NYSE: KKR) and private equity deals including the purchase of the Tennessee company that owns Johnstown Heights Behavioral Health in Johnstown.

© BizWest Media LLC