Ridgemont Equity Partners-backed Perimeter Healthcare has purchased WoodRidge Behavioral Care. Financial terms of the deal were not disclosed.
WoodRidge, a provider of treatment services for patients with psychiatric, behavioral, and emotional disorders, operates five facilities and three care programs across Tennessee, Arkansas and Missouri.
Perimeter Healthcare, led by chief executive officer Rod Laughlin, was formed with the intention of creating a behavioral healthcare business. Laughlin formed a partnership with Charlotte, North Carolina-based Ridgemont in early 2016.
Scott Poole, a partner at private equity firm Ridgemont, recognizes a “severe shortage of mental health providers.” He says the demand for behavioral health services is on an incline “due to mental health legislation,” and also due to the “increasing awareness of the downstream effects of untreated mental illness.” Poole says the partnership with Laughlin and his team “is the first step in building a foundation for expanding mental health programs and improving care in local communities.”
Other recent behavioral health deals include: Acadia Healthcare Co.’s purchase (Nasdaq: ACHC) of Priory Group; In 2015, HealthSouth Corp. (NYSE: HLS) bought Reliant Hospital Partners; and Universal Health Services Inc. (NYSE: UHS) said it will buy Foundations Recovery Network LLC.
McGuireWoods LLP served as legal counsel to Ridgemont and Bone McAllester Norton PLLC provided legal representation for Woodridge. Harpeth Capital served as financial adviser to Woodridge. BMO Sponsor Finance and Pinnacle Bank provided financing.