Chicago, IL – December 19, 2018
Frontenac, a Chicago-based private equity firm, today announced that it has completed the sale of Behavioral Health Group (BHG), a leading provider of outpatient opioid addiction treatment services, to The Vistria Group. Terms of the transaction were not disclosed.
Headquartered in Dallas, TX, BHG utilizes pharmacotherapy (maintenance and detoxification) and behavioral therapy (counseling) to treat both the bio-chemical and psychosocial aspects of addiction. In doing so, BHG offers patients their best opportunity for a successful recovery. With 50+ outpatient treatment centers in twelve states, BHG provides a critical service to thousands of individuals and their communities across the country.
Frontenac led a recapitalization of BHG in 2011 and helped develop and support an aggressive growth plan that resulted in the company more than tripling in size. Highlights include transformative investments in the senior and field-level leadership teams, expanding the geographic footprint from 20 to 50+ treatment centers via acquisitions and new facility openings, and building an expanded base of commercial and governmental payor relationships. These initiatives increased dramatically BHG’s base of patients served, expanded access to opioid addiction treatment services, and established BHG as the best-in-class network of opioid treatment facilities with superior patient outcomes.
“We are delighted by our successful partnership with BHG, its management team, and its founders,” said Michael Langdon, Managing Director of Frontenac. “BHG has matured into a terrific business that has not only grown bigger, but also stronger and more diversified under our ownership. We are pleased to have collaborated with the team as partners to achieve and exceed our objectives for growth, scale, patient satisfaction, and success. We are also happy to have found a strong new partner for BHG that recognizes the value in its leadership team, its business, and its mission.”
“The team at Frontenac has been a trusted advisor and a collaborative partner,” said Jay Higham, Chief Executive Officer of BHG. “They helped BHG drive strong growth by providing invaluable insights on tactical as well as strategic issues. Team Frontenac was not only excellent at providing day-to-day support, but they engaged with management in a positive and productive way to overcome challenging situations as well.”
Langdon added, “The infrastructure investments we have made in BHG position the business very well for years to come, and I am confident the company will continue to innovate and expand under new ownership.”
Piper Jaffray & Co. acted as financial advisor to BHG. Katten Muchin Rosenman LLP served as legal counsel to the Company.
About Behavioral Health Group
Behavioral Health Group (BHG) is a leading provider of opioid addiction treatment services. With 50+ outpatient treatment centers in twelve states, BHG provides a critical service to thousands of individuals and their communities across the country. BHG treatment centers are accredited by The Joint Commission. For more information, please visit www.bhgrecovery.com.
Frontenac is a leading private equity firm, based in Chicago. The firm focuses on investing in lower middle market buyout transactions in the consumer, industrial, and services industries. Frontenac works in partnership with proven operating leaders, through our executive-centric approach called CEO1ST, to identify, acquire, and build market leading companies through transformational acquisitions and operational excellence. The firm has built a leading franchise working with over 275 owners of mid-sized businesses, almost always families or founders, as they address complex transition issues of liquidity, management enhancement, and growth planning. For more information, please visit www.frontenac.com.