RCA Scoops Up Additional $100M, $330M Total Capital Raised  E-mail
Addiction Treatment Industry Newswire

11/15/2016 - ATIN - Recovery Centers of America (RCA), the treatment asset aggregator started several years ago by Philly real estate mogul Brian O'Neill, has raised an additional $100M in capital from its original private equity backer, Chicago area's Deerfield Management. The total of about $330M raised by RCA is among the very largest capital raises in the history of the addiction treatment business, on a par with financings made by CRC Health Corp. founder Barry Karlin as he built the company into the nation's largest treatment enterprise in the 1990s.

RCA's big capital pool gives it enormous financial firepower as it becomes an increasingly key actor in the highly active treatment mergers and acquisitions marketplace. Financial and strategic treatment players are jostling for leading, and potentially enormously profitable, roles in consolidating the highly fragmented 10K center strong national addition treatment business, one whose revenues are estimated at $35B annually.

RCA's growth strategy is a combination of acquistion and de novo greenfield center development. Already RCA has acquired a number centers, for example The Lighthouse in Southern NJ. And just a few days ago  RCA announced the opening of a 40+ bed property in Massachusetts, a coversion of a former inn the company prurchased. RCA is redeveloping a manor home near Baltimore and is in NIMBY litigation on another Northeast property conversion.

RCA Chief Clinical Officer Deni Carise said in a statement that RCA is pleased Deerfield has stepped up with the large follow-on financing, a sign she said that the investor continues to have strong faith in RCA's future and its plans for growth.

Ted Jackson

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