Newswires
Bradford Health Makes Move Into Wilderness Youth Addiction Therapeutics

07/03/2017 - ATIN - Bradford Health Services, among the Southeast's leading private addiction treatment providers, has acquired North Carolina's Red Oak Recovery, the first expansion by acquisition since private equity firm Centre Partners invested last year in Birmingham, AL-based Bradford.

Bradford is currently in very early stage deal negotiations on four other separate addiction treatment properties throughout the Southeast, CEO Clay Simmons told Treatment Magazine in an interview. He said that the Red Oak transaction is the first into wilderness youth therapeutics for Bradford, which has 30 addiction treatment properties in six states that previously have been more traditional addiction treatment type properties, with residential built around campuses that feed into outpatient continuum of care.

Red Oak has two wilderness style properties, one for male youth and the other for female youth with total capacity for 50 and immediate plans for expansion of the female facility, according to Simmons. The therapeutic youth treatment marketplace is dominated by wilderness style properties like Red Oak. While Simmons said Red Oak has been thriving, asset values in the therapeutic youth treatment market were decimated during the last, housing-led recession as parents were cut off from a major source of funding for incredibly expensive private youth therapeutic camps and schools -  home mortgages.

The therapeutic schools sector was the scene of the one of the worst deal fiascoes in recent addiction treatment memory. In 2007, the former CRC Health Group, now part of NYSE-listed Acadia Healthcare, paid nearly $300M for Aspen Education, a highly successful therapeutic schools roll up venture funded by Frazier Healthcare of Seattle and led by Aspen founder Elliott Sainer. Within two years, amid the U.S. housing collapse, CRC wrote off more than half the value of the Aspen transaction, creating the need for a massive management workout effort from which CRC was never fully able to recover. Global private equity behemoth Bain Capital, which had invested in CRC several years prior to the Aspen deal, finally threw in the towel on its addiction treatment investment dreams and sold CRC to Acadia in 2015.

Ted Jackson

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