Pharos Capital Group LLC has acquired Seaside Healthcare Inc.

Shreveport, La.-based Seaside provides behavioral health services, specializing in treatment for the adult and geriatric population. The company provides inpatient psychiatric treatment, partial hospitalization programs and outpatient programs. Terms of the deal were not disclosed. Pharos partnered with Seaside founder Franklin Roemer on the transaction. Roemer will continue to lead the company.

"With a shortage of behavioral providers in Louisiana and with a government mandate of parity for mental health in conjunction with physical health, we think the factors are in place for a compelling investing environment in this space.  [Roemer] will be expanding the current business through organic growth and will also be on the lookout for potential bolt-on acquisitions with the addition of capital," says Pharos Capital partner Jim Phillips. Expansion plans for the company include a 36-bed addition to an existing inpatient facility, and add-on acquisitions.

Pharos Capital, headquartered in Dallas and Nashville, is a private equity firm that has more than $1 billion in assets under management. The firm generally invests between $10 million and $30 million for positions in mid-market companies. 

Stephens Inc. served as Seaside’s financial adviser on the deal.

The transaction comes after New York private equity firm Bregal Partners bought ReMed Recovery Care Centers LLC as the first add-on acquisition for US Community Behavioral LLC, which provides services to adults and children with intellectual and developmental disabilities. Bregal bought US Community Behavioral in September as a way into the community-based behavioral health sector. 


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