Behavioral Healthcare Services - Coverage Report Q1 2019

Published on: 03/11/2019

The Behavioral Healthcare Services industry experienced a banner year of merger and acquisition (M&A) activity in 2018. The number of transactions increased 59% year-over-year to reach a historic industry high of 97 announced or closed transactions. In addition to volume, two of the largest disclosed deals on record occurred. In a go-private bid, Centerbridge Partners agreed to acquire all outstanding shares of mental and behavioral disabilities services provider Civitas Solutions, Inc.(NYSE:CIVI) for $17.75 per share in cash. The deal is projected to close for an enterprise value of $1.4 billion, representing a 27% premium over the average 30-day closing stock price as of December 18. In another multi-billion dollar deal, UnitedHealth Group acquired Genoa Healthcare for $2.5 billion in August. Genoa has more than 400 pharmacies across the US which specialize in serving the needs of those in the behavioral health and addiction treatment communities.

Key Contacts

Sophea Chau

Managing Director

John Ferrara

Founder & CEO