Investment firm Thrive Healthcare has announced its acquisition of behavioral treatment provider Harmony Recovery Group for an undisclosed amount.
This sale includes 10 treatment facilities based in Florida, North Carolina, Tennessee, New Jersey and Massachusetts.
Charlotte, North Carolina-based Harmony Recovery Group offers addiction and mental health treatment programs. Founded in 2015, its services include detoxification, intensive outpatient services, partial hospitalization, dual-diagnosis treatment, and health and wellness programs.
“The acquisition of Harmony Recovery Group by Thrive Healthcare marks the beginning of an exciting new chapter for our team,” Dr. Deja Gilbert, CEO of Harmony Recovery Group, said in a statement. “We look forward to seeing the company continue to grow and are confident Harmony will realize its full potential, servicing all lines of behavioral healthcare needs, under the stewardship of Thrive Healthcare’s esteemed board of directors led by Mr. Steve Fishman.”
Thrive Healthcare provides capital and strategic support to its operating and real estate partners. Its focus is on psychiatric hospitals, residential substance abuse treatment centers, outpatient treatment programs and specialty behavioral health.
While behavioral health deals have slowed during the first half of the year, activity picked up during Q3. There were a total of 48 behavioral health deals in Q3, a 50% increase from the previous quarter, according to a new report from M&A advisory firm Mertz Taggart.
Addiction treatment deals saw a quarter-over-quarter increase as well. There were a total of 14 addiction treatment deals in Q3, up from nine in Q2. Additionally, the number of mental health deals increased from 18 in Q2 to 36 in Q3.
“We are expecting a strong finish to 2022 and good start to 2023 based on our current deal pipeline and client activity,” Kevin Taggart, managing partner at Mertz Taggart, said in the report. “We are still very bullish on the lower middle market for behavioral health, with outpatient mental health leading the way.”
Other notable acquisitions in the addiction treatment space include Lee Equity Partners’ acquisition of substance use disorder provider Bradford Health and BayMark Health Services’ purchase of opioid use disorder treatment provider Fritz Clinic.
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