Pharos Capital Group has acquired behavioral health services provider Seaside Healthcare. The acquisition was done in partnership with the company’s founder, Franklin Roemer, who maintains a significant equity stake in the company.
Seaside is a behavioral health services provider that specializes in treatment services for the adult and geriatric population. Services include inpatient psychiatric treatment, partial hospitalization programs and intensive outpatient programs. Seaside currently operates two inpatient psychiatric facilities that have 54 licensed beds and operates five outpatient clinics. In addition to its owned and leased facility-based operations, Seaside manages 147 behavioral beds for regional hospitals. The company has approximately 400 employees. Seaside was founded in 2009 and is headquartered in Shreveport, LA (www.seasidehc.com).
“Pharos looks forward to working closely with Franklin Roemer and his team of accomplished healthcare operators to capitalize on this rapidly growing segment of the behavioral health space,” said Jim Phillips, Partner at Pharos Capital.
Seaside’s expansion plans include driving increased census to its outpatient programs as well as a 36-bed addition to an existing inpatient facility which will be completed soon. Additionally, Pharos intends to accelerate the company’s growth by acquiring complementary facilities to expand the company’s service offering and geographic footprint.
“We could not be more pleased with the prospects of working with the Pharos team. Pharos shares our vision of excellence in healthcare and this transaction enables Seaside to broaden our vision beyond its current service lines and geography,” said Franklin Roemer, Seaside’s Founder and CEO. “Pharos’ investment along with Seaside’s existing foundation allows us to dream big.”
Pharos Capital Group invests $10 million to $30 million in companies seeking later stage funding for internal growth, acquisitions, management buyouts or recapitalizations. The firm invests across many sectors but has a particular interest in healthcare and business services. Pharos Capital Group has offices in Dallas and Nashville (www.pharosfunds.com).
Stephens, Inc. served as financial advisor to Seaside in connection with the transaction.
© 2014 PEPD • Private Equity’s Leading News Magazine • 1-13-14
