Linden Capital Partners has completed its buy of Pinnacle Treatment Centers, a provider of inpatient and outpatient substance abuse treatment services.
Pinnacle operates over 30 facilities in five states (Kentucky, Michigan, New Jersey, Pennsylvania, and Virginia) and offers a range of residential and outpatient services including detoxification, group therapy, and counseling. Pinnacle is currently developing new sites in Ohio, Indiana, and Minnesota. The company treats over 10,000 people daily and is CARF accredited (Commission on Accreditation of Rehabilitation Facilities) and all locations include physicians, nurses, clinicians, administrative, and support staff. Pinnacle, founded in 2006, is led by its CEO Joseph Pritchard and is headquartered near Philadelphia in Mt. Laurel, NJ (www.pinnacletreatment.com).
“Pinnacle has become a leader in an important behavioral health market and has a strong track record of de novo and acquisition-based growth,” said Linden Partner Michael Watts. “We are impressed by Pinnacle’s high quality, full-continuum treatment model focused on local care delivery and look forward to partnering with Joe Pritchard and the Pinnacle team as it expands its geographic presence.”
Linden Capital Partners is focused exclusively on leveraged buyouts in the healthcare and life science industries. Linden’s strategy is based upon three elements: healthcare and life science industry specialization; integrated financial and operating expertise; and strategic relationships with large corporations. The firm is based in Chicago (www.lindenllc.com).
In March 2015, Linden closed its third private equity fund at the oversubscribed hard cap of $750 million. The original target for the new fund was $600 million. The investment in Pinnacle is the third investment for the firm’s third fund and the firm’s second investment in behavioral health following its Fund I investment in Behavioral Centers of America. Linden closed its first fund of $200 million in 2005 and its second fund of $375 million in 2010.
Linden has named Gary Kagan, one of the firm’s operating partners, as a member of Pinnacle’s board of directors. Mr. Kagan has over thirty years of experience in behavioral health, having served as a member of the original management team of Horizon Health Corporation and as a director of Behavioral Centers of America.
“We are excited to enter into this strategic partnership with Linden, which has extensive behavioral health expertise and a strong track record of developing healthcare services businesses,” said Mr. Pritchard. “We are proud of our accomplishments since our founding and, with the support and guidance of Linden, we look forward to the continued progression of our growth strategy, providing high quality, accessible substance abuse treatment for our patients.”
Piper Jaffray & Co. (www.piperjaffray.com) was the financial advisor to Pinnacle.
© 2016 Private Equity Professional • 8-17-16
