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CRC IN MAINE METHADONE BATTLE AS PRIVATE EQUITY CIRCLES PDF  | Print |  E-mail
Addiction Treatment Industry Newswire - Newswires

03/03/2012 - ATIN- CRC Health Group, the nation's largest operator of methadone clinics, as well as alcohol rehabs and drug rehabs, is in a battle royale with local NIMBY interests in Maine, of which the latest twist is that the Cupertino, CA-based addiction treatment giant has apparently decided to move forward with a federal lawsuit in order to force local interest to allow the opening of methadone clinics. One of CRC's earliest, and clearly it's most financially successful, business strategies is the consolidation play it has engineered in the highly fragmented, $1B a year methadone dispensary business. While CRC snapped up clinics at a rapid rate 10 years ago, the potential profits from which attracted some of the biggest institutional investors to CRC - OMERS, Credit Suisse, DLJ, etc.. - the pace of acquisition expansion appears to have slowed in recent years, perhaps highlighting a need for the kind of greenfield expansion CRC is seeking in Maine. There are over 1,000 methadone clinics nationwide, and CRC represents likely at most five percent of the business after a decade into its consolidation play. And rumors are swirling that other private equity investors - CRC is owned by Boston-based Bain Capital - are seeking to imitate CRC's success and are swooping down on the methadone business.

 

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