GE Capital’s Healthcare Financial Services group (HFS) was the administrative agent on a $55 million senior credit facility to fund the acquisition of Futures Behavior Therapy Center by Community Intervention Services (CIS), a portfolio company of H.I.G. Growth Partners. GE Capital Markets served as sole lead arranger and bookrunner on the transaction. Unused portions of the facility will be available to CIS to finance future add-on acquisitions.
Community Intervention Services is a provider of behavioral health and substance abuse services that cares for more than 50,000 patients annually. CIS was founded as a platform by H.I.G. Growth Partners and behavioral healthcare executive Kevin Sheehan, to acquire, develop and operate a national network of specialized behavioral health treatment facilities and programs. The first acquisition of CIS was the buy of Boston-based South Bay Mental Health in April 2012 (www.southbaymentalhealth.com).
Futures Behavior Therapy Center is a clinic-based provider of treatment and education services for children with autism spectrum disorders and other developmental disabilities. The company is headquartered north of Boston in Beverly, MA (www.futuresbtc.com).
“Futures marks CIS’ sixth acquisition and further expands our treatment capabilities,” said Mr. Sheehan, CEO of CIS. “It was a pleasure to work with the HFS team due to its deep understanding of the healthcare industry, particularly in the area of behavioral health.”
GE Capital’s Healthcare Financial Services group (HFS), led by its president and CEO Darren Alcus, provides financing to US healthcare companies, sponsors, investors and developers across various healthcare sectors including senior housing, hospitals, medical offices, outpatient services, pharmaceuticals and medical devices.
HFS is one of the most active capital providers in the US healthcare market having committed about $10 billion in new capital to 240 transactions in 2014. According to GE, HFS was the top lead arranger last year for financings up to $1 billion in US healthcare leveraged finance. Last month, GE agreed to sell HFS to Capital One for $ 9 billion. Mr. Alcus and the rest of the HFS senior management will continue to lead HFS under Capital One ownership (www.gehealthcarefinance.com).
“This transaction demonstrates our extensive experience and continued commitment to the behavioral healthcare sector,” said Al Aria, senior managing director of corporate finance at HFS. “We look forward to collaborating further with CIS and H.I.G. and supporting their growth objectives.”
H.I.G. Growth Partners is the dedicated growth capital investment affiliate of H.I.G. Capital. With $500 million of committed capital, Growth Partners seeks to make both majority and minority equity investments ranging from $5 million to $30 million in growth-oriented businesses with between $10 million and $100 million in revenues. H.I.G. Growth Partners considers investments across all industries, but focuses on certain high-growth sectors where the team has in-house expertise such as healthcare, technology, internet and media, consumer products, and technology-enabled financial and business services (www.higgrowth.com).
© 2015 PEPD • Private Equity’s Leading News Magazine • 9-2-15