ACAS Sells The Meadows to Kohlberg
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ACAS Sells The Meadows to Kohlberg

the meadows nf1American Capital (ACAS) has sold its portfolio company MW Acquisition Corporation (The Meadows) to Alita Care, a portfolio company of Kohlberg & Company, for $97 million. Alita Care is a new platform formed by Kohlberg & Company to serve as the parent holding company for The Meadows and Kohlberg’s existing portfolio company, Sunspire Health.

The Meadows provides treatment services for trauma and for addiction, eating disorders, and related mental health conditions. Services are offered on an inpatient and outpatient basis. The company is based northwest of Phoenix in Wickenburg, AZ (www.themeadows.com).

sunspire nf33Like The Meadows, Sunspire is a provider of behavioral health services for the treatment of substance abuse disorders. The company has ten locations in California, Florida, Illinois, Massachusetts, Oregon, South Carolina, and Texas. The company is headquartered north of Newark in Lyndhurst, NJ (www.sunspirehealth.com). Kohlberg & Company acquired Sunspire in June 2015.

Jim Dredge, CEO of Meadows, has accepted the position of Chief Executive Officer of Alita at closing and will lead the combined company. A.J. Schreiber, CEO of Sunspire, was named the Vice Chairman of the Board of Alita.

American Capital acquired The Meadows in February 2006. Over the term of its investment, the firm realized 2.6 times its equity investment and generated a 28% IRR. The combined debt and equity IRR was 22%, including dividends, interest, realized gains and fees. In December 2012, American Capital completed an add-on acquisition for The Meadows with the buy of Remuda Ranch, a provider of inpatient, residential and outpatient eating disorder treatment programs.

“We are extremely pleased with the outcome of our investment in The Meadows,” said Jon Isaacson, Managing Director at American Capital. “The success of our investment is a result of a strong management team who focused on clinical innovation and excellence. Since our initial investment, The Meadows has broadened its market leadership through acquisition and multiple new program launches, which has created a differentiated platform for future growth.”

acas nf57American Capital is a publicly traded private equity firm and asset manager that originates, underwrites and manages investments of $10 million to $750 million in middle market private equity, leveraged finance, real estate and structured products. Founded in 1986, American Capital has $77 billion in total assets under management and has eight offices in the US, Europe and Asia. The firm is headquartered in Bethesda (www.AmericanCapital.com).

kohlberg nf11Kohlberg & Company invests in companies in the industrial manufacturing; consumer products; business services; healthcare services; and financial services sectors. The firm concentrates on companies with EBITDAs between $20 million and $100 million where it can invest between $50 million and $200 million of equity. Kohlberg & Company was founded in 1987 and is based north of New York City in Mt. Kisco, NY (www.kohlberg.com).

Antares Capital (www.antares.com), Capital One Healthcare , CIT Healthcare Corporate Finance, and Partners Group (www.partnersgroup.com) provided committed debt financing to the transaction.

© 2016 Private Equity Professional • Private Equity’s Leading News Magazine • 5-25-16

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