Revelstoke buys consuming dysfunction remedy supplier Monte Nido & Associates

Revelstoke Capital Companions received the public sale for Monte Nido & Associates, agreeing to accumulate the consuming dysfunction remedy supplier from Levine Leichtman Capital Companions, a number of sources inform Axios.

  • A few of these individuals place a valuation across the ballpark of $725 million.

Why it issues: The COVID-19 atmosphere fueled a spike in hospitalizations for anorexia and different consuming problems amongst adolescents.

Driving the information: The Denver-based personal fairness store signed the deal over the weekend, concluding a Harris Williams-run public sale course of that kicked off late final yr, sources say.

  • Sources beforehand cited estimated professional forma EBITDA of about $50 million for 2022, (or $65 million with maturities), however one supply provides that precise EBITDA is extra like $40 million.

Context: Monte Nido supplies varied residential remedy, partial hospitalization, and intensive outpatient packages for the remedy of consuming problems, a typical comorbidity of despair and different behavioral well being points.

  • Monte Nido traditionally slanted in the direction of lower- and moderate-acuity sufferers, a extra aggressive care setting in distinction to high-acuity sufferers, however extra lately diversified, sources say.
  • The corporate invested in increased acuity affected person populations by its acquisitions of Walden Behavioral Care in September 2021 and Arizona-based Rosewood Heart for Consuming Problems in October 2020, the latter by which it additionally entered the Southwest market.
  • Monte Nido as of July encompasses 5 totally different manufacturers with 47 packages in fourteen states.

Sure, and: The Monte Nido deal comes after Revelstoke in January put its cash behind one other space of behavioral well being, investing in substance abuse remedy supplier Crossroads Therapy Facilities alongside CDPQ.

State of play: Monte Nido follows the joint acquisition of trade chief Consuming Restoration Heart by Apax and Oak HC/FT final fall. (ERC for its half has diversified into temper & nervousness dysfunction remedy.)

  • Sources on the time instructed Sarah the deal was valued at roughly $1.4 billion, with the corporate projecting $91 million of professional forma mature EBITDA for 2021.
  • Apax’s Andy Cavanna and Oak HC/FT’s Andrew Adams then spoke to the scarcity of fine suppliers available in the market, emphasizing the worth of getting an omnichannel method that encompasses each in-person and digital care — significantly in terms of addressing the nation’s entry downside.

The underside line: Sale processes appear to be taking somewhat bit longer in as we speak’s turbulent market, however we proceed to see personal fairness and enterprise capital flock to numerous pockets of behavioral well being — be it Vistria Group’s quiet youth psychological well being guess or AI-driven digital startup Wysa touchdown $20 million in Collection B funding.

LLCP and Revelstoke declined to remark.

Claire Rychlewski contributed to this report.