Covington Advises Bournewood Health Systems in its sale to Alita Care, Enhancing Capabilities with Leading New England Acute Psychiatric Treatment Provider
BOSTON, MA – March 17th, 2017 - Covington Associates LLC, a leading middle market investment bank, announced its role as exclusive advisor to Bournewood Health Systems (“Bournewood”), a leading New England based provider of acute psychiatric and dual diagnosis (psych/substance abuse) treatment services, in its sale to Alita Care, LLC (“Alita”), a leading national provider of behavioral health services. Alita is owned by Kohlberg & Company, L.L.C., a leading private equity firm specializing in middle-market investing. Michael Papile, Managing Director of Covington Associates said “We are pleased to have been given the opportunity to represent such a well regarded Behavioral Health organization as Bournewood. It exemplifies the positive attributes that we see driving the current levels of M&A activity in the rapidly consolidating Behavioral Health market.” Based in Brookline, Massachusetts, Bournewood has been in continuous operation since 1884 and serves a wide range of adults and adolescents through acute inpatient, partial hospitalization, and outpatient programs. Bournewood has significant experience treating patients with complex psychiatric and addiction-related diseases and serves a critical need in its local market. Former Massachusetts mental health commissioner Marcia Fowler was named Chief Executive Officer of Bournewood in 2015 and will continue to lead the hospital going forward. Alita serves as the parent holding company for Meadows Behavioral Healthcare (“The Meadows”) and Sunspire Health (“Sunspire”) and is a leading national behavioral health services provider with 16 differentiated programs across the country. The acquisition of Bournewood will further enhance Alita’s treatment capabilities, particularly in acute psychiatric care, while also expanding its comprehensive care model in the Massachusetts market. Jim Dredge, Chief Executive Officer of Alita, remarked, “We are thrilled to be welcoming Bournewood to the Alita family. Their reputation for clinical excellence has been cultivated over 130 years, and they are well known for providing cutting-edge and compassionate treatment for patients and their families, clinical referral sources, and payors across the country. By adding Bournewood to our family of programs, we will be able to offer a full continuum-of-care to an even wider range of patients.” Bournewood will continue to operate as an independent brand within Alita. Clinical operations will not be impacted by the transaction, and Bournewood will continue to provide the best trauma-informed and person-centered treatment services for adults, adolescents, and their families in the Massachusetts behavioral health field. “We are proud to be joining the Alita team and to be combining our expertise with that of the highly-respected and caring professionals at The Meadows and Sunspire Health,” stated Marcia Fowler, Bournewood’s CEO. “We have a mutual appreciation for the mission-driven cultures of these organizations within Alita and look forward to continuing to expand and improve services for the increasing number of people struggling through mental health and addiction crises.” Covington Associates LLC served as financial advisor and Choate, Hall & Stewart LLP served as legal counsel to Bournewood. Paul, Weiss, Rifkind, Wharton & Garrison LLP and Benesch, Friedlander, Coplan & Aronoff LLP acted as legal counsel and regulatory counsel, respectively, to Alita. Antares Capital, Ares Capital Management, Capital One Healthcare, CIT Healthcare Corporate Finance, and Partners Group provided debt financing to support the transaction.
Covington Associates acts as Adviser to Walden Behavioral Care on its acquisition of Atlanta Center for Eating Disorders
BOSTON, MA -February 6, 2017-Covington Associates LLC, a leading middle market investment bank, announced its role as exclusive financial advisor to Walden Behavioral Care, LLC. on its acquisition of the Atlanta Center for Eating Disorders (ACE) of Dunwoody, Ga. The joining of these two organizations brings more comprehensive, individualized and accessible eating disorder treatment to those across the Atlanta region. Leveraging Walden’s proven experience in establishing a regional, full system of care, ACE will build off its 23 years of treatment excellence, expanding its community-based treatment services and programming into additional, intensive treatment settings. Specifically, it is Walden’s intention to create programming to meet the needs of individuals who require comprehensive, coordinated care. ACE will continue to provide treatment at the partial hospitalization, intensive outpatient (IOP) and aftercare program (Outpatient) levels at its Alpharetta, Decatur and Dunwoody locations. Michael Papile, Managing Director of Covington Associates commented, ”This transaction represents another landmark for Walden as they continue their expansion plans into the Southeast, remaining focused on clinical excellence and best business practices.” Thirty million Americans have eating disorders, including hundreds of thousands throughout Georgia. The combination of Walden and ACE establishes one of the region’s first full systems of care for adolescents and adults impacted by anorexia, bulimia, binge eating disorder and other specific feeding or eating disorders (OSFED). “This acquisition is about bringing together two organizations with a shared vision and commitment to providing high quality treatment and support as close to home as possible, through all levels of care,” said Stuart Koman, Ph.D., president and CEO of Walden Behavioral Care. “We’re honored to become part of the Metro Atlanta community, giving individuals what they deserve: the best possible chance for a lasting recovery.” All ACE clinical and administrative staff will remain with the organization, including. Clinical Director & founder Linda Paulk Buchanan, Ph.D., and Clinical Director Rick Kilmer, Ph.D. Likewise, there will be no other changes to Walden’s staffing, locations or operations. “Words cannot do justice for the high level of respect and admiration I have for Linda, Rick and their highly accomplished team,” added Koman. “This partnership is because of them. We’re excited to work together and build on the outstanding care they have become known for throughout Georgia and beyond.” With the acquisition, Walden will now have 14 locations across Massachusetts, Connecticut and Georgia, including two inpatient units, one residential facility and 11 ambulatory clinics. “Rick and I are so excited to join Walden – we immediately felt a connection with Stu, Walden’s staff and its treatment philosophy,” said Paulk Buchanan. “Our longstanding mission has been to provide intensive treatment to people with eating disorders, while minimizing disruption to their normal lives. By offering a full range of services for those in need, we now have an opportunity to build on that promise.” About Covington Associates LLC Covington Associates is an investment banking firm offering advisory services in the areas of mergers and acquisitions (“M&A”), capital raising, strategic advisory, fairness opinions, and valuations to middle-market companies across the Healthcare and Life Sciences, Business Services, Consumer & Industrial, and Technology verticals. Founded in 1991, with offices in Boston and New York, the vision for Covington has been to provide clients with the highest caliber of senior-level attention and to remain an advice-driven and results-focused organization. Since its inception, Covington Associates has completed more than 200 transactions globally for both private and publicly traded companies totaling over $15 billion. For more information, visit www.covllc.com. About Walden Behavioral Care Walden Behavioral Care offers a full system of specialized care for individuals and families impacted by all types of eating disorders. Our commitment is to provide the most personalized support and best chance for a lasting recovery, as close to home as possible for those across New England and Georgia. Walden’s programming spans all levels of care – inpatient, residential, partial hospitalization, intensive outpatient and outpatient care – for those with anorexia, bulimia, binge eating disorder and other specified feeding or eating disorders (OSFED). Locations include Amherst, Braintree, Milford, Peabody, Waltham and Worcester, Mass.; Guilford, South Windsor and Vernon, Conn; and Alpharetta, Decatur and Dunwoody, Ga. Additional information is available at www.WaldenEatingDisorders.com. About The Atlanta Center for Eating Disorders (ACE) The Atlanta Center for Eating Disorders (ACE) treats individuals of all ages who seek to recover from anorexia, bulimia, binge eating disorder or OSFED (other specified feeding or eating disorder). By offering partial hospitalization, intensive outpatient care and outpatient care, along with personal care housing at ACE House, treatment can be individualized, customized and modified as the individual progresses toward recovery. Our programs are designed to allow participants to maintain their daily lives as much as possible during treatment. Seeking to provide convenient locations, ACE headquarters are located in Dunwoody, with additional facilities in Alpharetta and Decatur, Ga. Further information is available at www.EatingDisorders.cc
Emory Univesity has entered into a joint venture for its Emory Genetics Laboratory with Eurofins
Covington advised Emory University on the sale of 75% of its Emory Genetics Lab to Eurofins for $41.3m in cash and a 25% stake in the newco EGL Genetics Diagnostics, LLC. Press Release>>
Burman’s acquired by Diplomat
Covington Associates, LLC acted as financial advisor to Burman's Specialty Pharmacy (Burman's) in its sale to Diplomat Pharmacy, Inc. (NYSE: DPLO). Burman's, located in the greater Philadelphia, Pennsylvania area, is a provider of individualized patient care with a primary focus on the challenging condition of hepatitis C. Headquartered in Flint, Michigan, Diplomat focuses on medication management programs for people with complex chronic diseases, including oncology, immunology, hepatitis, multiple sclerosis, HIV, specialized infusion therapy and many other serious or long-term conditions. >Press Release
SCCIPA acquired by affiliate of HCA’s Physician Services Group
Covington Associates, LLC acted as financial advisor to Santa Clara County Independent Practice Association (SCCIPA) in its acquisition by an affiliate of HCA’s Physician Services Group. SCCIPA's individual practice association is a market leader in providing physicians and related health services to the residents of Santa Clara County. >Press Release
Accountable Health Solutions, Inc. acquired by Hooper Holmes
Hooper Holmes (NYSE MKT: HH) has acquired the assets representing the health and wellness business of Accountable Health Solutions, Inc. (AHS). Accountable Health Solutions offers comprehensive health and wellness programs to employers and health plan clients.
Alere Health acquired by Optum
Covington Associates LLC served as sole financial advisor to Alere Health, a provider of condition management, case management, wellbeing, wellness and women’s and children’s health services to regional and local health plans, Fortune 500 employers and state governments, to Optum for $600 million in cash. >Press Release
Walden Behavioral Care recapitalized by Seacoast Capital
Covington Associates, LLC acted as financial advisor to Walden Behavioral Care, LLC, one of the first treatment facilities in the country to specialize in eating disorders and provide a full continuum of care for patients - inpatient, residential, partial hospitalization and intensive outpatient care - as well as inpatient programs for psychiatric patients. To further serve patients Walden has expanded to seven locations throughout Massachusetts and Connecticut. Walden was recapitalized by Seacoast Capital, a PE fund focused on mezzanine debt and equity investments in lower-middle market businesses.
MedAllocators acquired by ExamWorks
Covington Associates, LLC acted as financial advisor to MedAllocators, Inc., a leading Medicare compliance and complex claims services company, and parent company, Ability Services Network, Inc., a leading provider of case management and technology services, were acquired by ExamWorks. The ASN and MedAllocators acquisition expands ExamWorks' ability to provide cost containment solutions, adds case management capabilities and resources for workers' compensation and disability clients. >Press Release
Hobart Group Holdings acquired by Precision For Medicine
Covington Associates advised Hobart Group Holdings, a leading market access firm, on their acquisition by Precision For Medicine, a specialized services company supporting next generation approaches to drug development and commercialization. >Press Release
dLife acquired by Veria Living
dLife is the leader in diabetes self-care and a community network and resource for millions of people with prediabetes, diabetes, their caregivers and healthcare providers. Covington Associates acted as financial advisor to dLife in their sale to an affiliated entity of Veria Living, a multiplatform media brand devoted to showcasing healthy lifestyle and wellness programming. >Press Release
CPR+ acquired by Mediware
Covington Associates, LLC announced its role as financial advisor to Definitive Homecare Solutions (dba CPR+), the provider of the CPR+ software application for HME, home infusion and specialty pharmacy industries, in its sale to Mediware Information Systems, a Lenexa, KS based provider of specialized software solutions targeting specific processes within healthcare institutions. >Press Release
Envoy Health acquired by Lincare
Covington Associates, LLC announced its role as financial advisor to Envoy Health, a nationwide provider of diabetes supplies and patient support services. Covington acted as exclusive M&A advisor to Envoy Health in its sale to Lincare, Inc., a subsidiary of The Linde Group, is a Clearwater, FL. based healthcare services company. >Press Release
Premier Source acquired by AmerisourceBergen
Covington Associates acted as exclusive financial advisor to Premier Source, a privately held company that provides consulting and reimbursement services to medical device, pharmaceutical, molecular diagnostic, and biotechnology manufacturers, as well as other health services companies, in its sale to AmerisourceBergen Corporation (NYSE:ABC). >Press Release
InfoMedics acquired by Physicians Interactive
Covington Associates announced it acted as exclusive financial advisor to InfoMedics, the industry expert in the design and delivery of interactive patient communications platforms, in its sale to Physicians Interactive. >Press Release
Excella Healthcare Acquired by Encompass Home Health.
Covington Associates announced it acted as exclusive financial advisor to Excella Healthcare, a New England based rehabilitation company with a goal to provide the highest quality rehabilitation in the most cost effective manner, in its sale to Encompass Home Health.
Sanare has acquired Doctor Diabetic Supply
Covington Associates served as financial advisor to Sanare, a healthcare products and services company specializing in diabetes, in their acquisition of Doctor Diabetic Supply, a direct-to-consumer distributor of diabetic testing supplies and related products in the United States.
Med-Vantage, Inc. acquired by IMS Health
Covington Associates acted as exclusive financial advisor to Med-Vantage, Inc., a software solutions company, in its sale to IMS, a global provider of information services for the healthcare industry. >Press Release
JJWild raised a round of senior debt financing from GE Healthcare
Covington Associates LLC has arranged $20 million in senior debt financing for JJWild, Inc., the leading provider of integrated technology solutions and consulting services for the MEDITECH healthcare information systems community. The financing was provided by GE Healthcare Financial Services.
Tourtellotte Solutions acquired by BioClinica, Inc.
Covington Associates acted as financial advisor to Tourtellotte Solutions, a software and services firm focused on providing cutting edge products, custom application development and consulting services, in its sale to BioClinica, Inc. (NASDAQ: BIOC).
Pharsight Corporation acquired by Tripos International
Covington Associates announced today it acted as financial advisor to Pharsight Corporation (NASDAQ: PHST), a leading provider of software, strategic, and regulatory services designed to optimize clinical drug development, in its sale to Tripos International, a portfolio company of Vector Capital.
Eidetics acquired by Quintiles Transnational
Covington Associates acted as financial advisor to Eidetics, a privately held data analytics and market research consulting company, in its sale to Quintiles Transnational Corp. >Press Release
Iverness Medical Innovations has acquired Matria Healthcare
Covington Associates announced today it has acted as financial advisor to Inverness Medical Innovations (AMEX: IMA), in its definitive merger agreement to acquire Matria Healthcare, Inc. (AMEX: MATR). Inverness will acquire all outstanding shares of common stock of Matria for $39.00 per share of Matria common stock, payable $6.50 in cash plus $32.50 in convertible preferred stock issued by Inverness. The proposed transaction would take the form of an indirect acquisition through a merger of a newly formed, wholly-owned subsidiary of Inverness with and into Matria.
Inverness Medical Innovations has acquired ParadigmHealth
Covington Associates LLC announced today it has acted as advisor to Inverness Medical Innovations (AMEX: IMA) in its agreement to acquire ParadigmHealth ("Paradigm"), a leading provider and integrator of care and disease management services for acutely ill and clinically complex patients, including neonatal intensive care and oncology patients. The transaction is structured as an all cash deal, with a purchase price of approximately $230 million. This is the 8th transaction that Covington Associates has advised Inverness on in 2007, representing over $4 billion in transaction value.
Inverness Medical Innovations has acquired Alere Medical, Inc.
Covington Associates has acted as advisor to Inverness Medical Innovations, Inc. (AMEX: IMA) in its agreement to acquire Alere Medical, Inc., a leading provider of health and care management services helping patients with chronic illnesses manage their conditions through a unique combination of at-home monitoring, patient education, and nurse-patient relationships. The purchase price is $302 million, comprising approximately $125 million in cash and $177 million in Inverness common stock. This is the fifth transaction Covington has advised Inverness on in 2007.
JJWild, Inc. acquired by Perot Systems International
Covington Associates LLC announced that it has acted as exclusive financial advisor to JJWild, Inc., a leading provider of integrated technology solutions and consulting services for the MEDITECH healthcare information systems community, in its sale to Perot Systems Corporation (NYSE: PER), a worldwide provider of information technology and business solutions. The transaction is valued at approximately $89 million, subject to certain adjustments and offsets. Covington Associates had previously advised JJWild on a round of debt and equity financing in 2006, provided by GE Healthcare Services and Advent International, respectively. > Press Release
Alere Medical acquired by TA Associates
Covington Associates LLC announced that it acted as financial advisor to Alere Medical Incorporated, a leading disease management company in its sale to management and TA Associates, a private equity and buyout firm. The transaction is valued at $175 million. >Press Release
OmnisHealth acquired by Sanare
Covington Associates acted as financial advisor to OmnisHealth a blood glucose monitoring systems and other diabetes solutions, in their sale to Sanare, a provider of care management products and services that improve the health and reduce the medical costs of people with diabetes.
Galt acquired by Cerner Corporation
Covington Associates LLC has advised Galt Associates, Inc., a leading provider of safety and risk management solutions for pharmaceutical, medical device and biotechnology companies, in its sale to Cerner Corporation (NASDAQ: CERN), a leading supplier of healthcare information technology. The terms of the transaction were not disclosed. >Press Release
Alere Medical has acquired DM business of National Jewish Medical and Research Center
Covington Associates LLC acted as the sell-side advisor to Alere Medical Incorporated, a provider of integrated, condition-specific disease management services in two transactions, its acquisition of National Jewish Medical and Research Center in October and a long term disease management contract with Pacificare Health Systems, Inc. (NYSE: PHS).
Quitnet acquired by Axia Health Management
Covington Associates LLC acted as the exclusive sell-side advisor to Quitnet, Inc., a provider of a smoking cessation program that features one of a kind integration between Web, e-mail and telephonic support modalities that can be customized for health plans and employers, in its sale to AXIA Health Management, a national health care services provider.
Alere Medical has entered into a long term contract with Pacificare
Covington Associates LLC acted as the sell-side advisor to Alere Medical Incorporated, a provider of integrated, condition-specific disease management services in two transactions, its acquisition of National Jewish Medical and Research Center in October and a long term disease management contract with Pacificare Health Systems, Inc. (NYSE: PHS)in June.
American WholeHealth Networks, Inc. acquires Alignis, Inc.
Covington Associates advised American WholeHealth Networks, a health and wellness company offering complementary and alternative medicine solutions to patients nationwide, on its purchase of Alignis, Inc., a provider of chiropractic and complementary health solutions.
Landcorp acquired by SHPS
Covington Associates advised Landacorp, Inc., provider of technology-driven solutions for health plans and healthcare delivery organizations, in its sale to SHPS, Inc., a leading total benefits outsourcing provider offering a comprehensive spectrum of benefits and human resource outsourcing, health management and consulting services for $56 million in cash.
Paidos acquired by Paradigm Health Corporation
Paidos Health Management Services, Inc. is a specialty healthcare company focused on comprehensive NICU population management. Covington Associates advised Paidos on its sale to Paradigm Health Corporation, a healthcare company that provides improved financial and clinical outcomes for catastrophic medical events.
Navix Radiology Systems Imaging acquired by Navix Imaging
Navix Radiology Systems Inc. ("Navix") provides advanced diagnostic imaging services including MRI, CT, nuclear medicine, ultrasound, bone densitometry, and general X-ray through a flexible delivery system. Services are provided through company owned multi-modality imaging centers, as well as through specialty sites, mobile units, and complete imaging departments in various health institutions. Covington Associates advised Navix on the divestiture of its Southern Region operations to a management-led buyout group.
Integrative Medicine Communications acquired by A.D.A.M.
Integrative Medicine Communications, Inc. was an e-health company that provided information about integrative medicine to professionals and consumers. Covington Associates advised IMC on its sale to A.D.A.M., Inc. (Nasdaq: ADAM) a leading developer of interactive consumer health information.
Inverness Medical Technology, Inc. has acquired LXN
Inverness Medical Technology, Inc. (AMEX:IMA) is a publicly-held developer, manufacturer, and marketer of innovative products focused primarily on diabetes self-management. Covington Associates advised Inverness in the acquisition of LXN Corporation. LXN is a privately-held firm active in the development and commercialization of fructosamine monitoring technology for people with diabetes.
Other Options, Inc. acquired by Res-Care, Inc.
Covington Associates advised in the sale of Other Options, Inc., a residential care company for mentally disabled individuals, to Res-Care Inc. (NASDAQ:RSCR) , a provider of training, education and services to people with disabilities and troubled youths.