|Addiction Treatment Industry Newswire|
|04/02/2015 -ATIN – Finally doing that acquisition he’s been looking to do lately – not that American Addiction Centers hasn’t been doing some deals like the Recovery First deal in South Florida late last year and the outpatient chain buy in Rhode Island just a month or two ago – early today American Addiction Centers (NYSE: AAC) CEO and Founder Mike Cartwright announced the kind of deal he’s been looking to do for some months now. “This was the perfect deal, exactly the kind of set of assets I’ve been looking to acquire lately,” Cartwright told Treatment Magazine in a very early interview this morning.
Sunrise House Foundation
In a press release issued this morning, after many weeks of private negotiations, American Addiction Centers announced it had paid $6.6M in cash- AAC has access to plenty of that after earlier this year reaching a deal for a $125M line of credit with very liberal terms in the line’s indenture – for a Western New Jersey, 32-yr-old non-profit basically breaking even on 9.2M in annual revenue called Sunrise House Foundation. Sunrise House Foundation is located in the municipality of Lafayette and currently on 22-acres, has 110 beds and closing of the deal is subject to certain conditions, including by AAC of the assumption of up to half a million dollars of certain of Sunrise House Foundation liabilities.
Mostly In-Network Operation, Heavy Emphasis on Medicaid Business
“We will be keeping on virtually the entire staff, including the CEO Phil Horowitz,” says Cartwright, adding that AAC will be training Sunrise House Foundation staff in the fundamentals of addictions marketing and will be investing $5M over time in upgrades to the 22-acre facility so the Sunrise sales force can get more of the In-Network higher reimbursement clientele and rely less on the much lower per diem reimbursements of Medicaid.
Full Continuum of Care
Out of the 110 beds on the main Lafayette campus, 18 of the beds are full medical detox beds. Furthermore, there are a total of 30 sober living beds in Franklin and Plainfield, NJ and two outpatient treatment programs located at the main campus in Lafayette and in Mountainside, NJ, making Sunrise House Foundation an addiction treatment institution with a full continuum of care.
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