Mental health center’s owner to be sold
JOHNSTOWN — The owners of a behavioral health care facility in Johnstown and a second Colorado psychiatric hospital in Colorado Springs will be sold to a new private equity group, PE Hub reports.
Franklin Tennessee-based Summit Behavioral Healthcare owns Johnstown Heights Behavioral Health in Johnstown and Clear View Behavioral Health in Colorado Springs. It paid $29 million for the building it opened the first in; a purchase price for Clear View couldn’t be found. The two total 204 beds.
Summit formed in 2013, sold to a private equity owner two years later, added a dozen or so locations in a roll-up of mental health facilities, attracted new majority private equity owners, added more sites, and is now with 24 facilities in 16 states and, at eight years old, being sold again.
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It had been backed by Lee Equity Partners and FFL Partners. They will sell to Patient Square Capital.
Lee is in Chicago and FFL in San Francisco. Lee invests $50 million to $100 million range for majority stakes; FFL buys into companies worth up to $400 million. PE Hub, which reports on private equity mergers and acquisitions, said Summit’s 2021 EBITDA will be about $90 million.
PE Hub reported the deal assigned an enterprise value of $1.3 billion to Summit and the two sellers will each earn a 4x gross multiple on invested capital and a 42% gross individual rate of return.
Patient Square is in Menlo Park, California; it was formed in 2020 to invest in health-care products, services and technologies, its website said. Senior executives come from KKR, Ares Management and Golden Gate Capital.
In July it led a $100 million Series B round for gene therapy developer Kriya Therapeutics, in Redwood City, California, and Research Triangle Park, North Carolina. Kriya’s Series A was $80 million.
In June, Patient Square led a $145 million investment in Cambridge, U.K.-based Apollo Therapeutics, which has a U.S. base in Boston. The biopharmaceutical’s other investors include AstraZeneca, GlaxoSmithKline, and Johnson & Johnson.
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