Newswires
AAC Buys South Florida's Recovery First  E-mail
Addiction Treatment Industry Newswire

12/18/2014 -ATIN - American Addiction Centers (NYSE: AAC) the company addiction entrepreneur Michael Cartwright just took public in a highly successful deal, and whose stock has been flying higher ever since its IPO launch in the early fall, has bought South Florida's Recovery First, a center whose CEO Jim Davis has reputedly been shopping for some time.

$13M in Cash

AAC paid $13M in cash for a center that gets most of its business from in-network arrangements, and thus likely has highly reliable cash flows with relatively low marketing costs. According to a press release- AAC CEO Michael Cartwright was not immediately available for comment - the deal is supposed to close in the first quarter. Recovery First has 56 beds that include 20 detox beds, according to a press release on the Nasdaq site, that generate $7.3M in revenue and cash flow (EBITDA) of about $2.3M on an annualized basis based on the 9-mo period ending in September. Thus, Cartwright paid approximately 5.6x cash flow for Recovery First.

Stock Doubled

American Addiction Center's stock closed near $30 today, approximately double its IPO offering price of $15 on a day the Dow Jones industrial Average soared over 400 points in its best single day gain in 3 years.

POST YOUR COMMENTS BELOW... start a debate!

Got Addiction News? ...TELL US!

This e-mail address is being protected from spambots. You need JavaScript enabled to view it

Ted Jackson

561-702-4235    

Trackback(0)
Comments (0)Add Comment

Write comment
quote
bold
italicize
underline
strike
url
image
quote
quote
smaller | bigger

busy
 

Recent Print Issue: Sept 2015 | Subscribe Now!

Special Report
Austin's MAP Looking to Future
Outcomes
andValue-Based Compensation
Growth Through Licensing

On the Cover: Jacob Levinson
Founder, CEO MAP

Click here to read the digital
print edition of TM.

Follow Treatment Magazine on Twitter!
Become a fan of Treatment Magazine on Facebook!