M&A Deal Summary

CRC Health Group Acquires Habit OPCO

On March 4, 2014, CRC Health Group acquired healthcare services company Habit OPCO from NewSpring Capital and Three Arch Partners

Acquisition Highlights
  • This is CRC Health Group’s 1st transaction in the Healthcare Services sector.
  • This is CRC Health Group’s 1st transaction in the United States.
  • This is CRC Health Group’s 1st transaction in Massachusetts.

M&A Deal Summary

Date 2014-03-04
Target Habit OPCO
Sector Healthcare Services
Buyer(s) CRC Health Group
Sellers(s) NewSpring Capital
Three Arch Partners
Deal Type Add-on Acquisition

Target

Habit OPCO

Boston, Massachusetts, United States
Habit Opco is an accredited healthcare organizations in New England providing multi-disciplinary treatment services on an outpatient basis to individuals addicted to drugs enabling them to function normally in society. Habit provides comprehensive services to individuals addicted to opiates and currently operates 12 sited programs and two mobile van units. Habit OPCO was founded in 1986 and is based in Boston, Massachusetts.

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Buyer(S) 1

Buyer

CRC Health Group

Cupertino, California, United States

Category Company
Founded 1995
Sector Healthcare Services
DESCRIPTION

CRC Health Group, Inc. is a provider of specialized behavioral care services in the United States.


DEAL STATS #
Overall 1 of 1
Sector: Healthcare Services M&A 1 of 1
Type: Add-on Acquisition M&A Deals 1 of 1
State: Massachusetts M&A 1 of 1
Country: United States M&A 1 of 1
Year: 2014 M&A 1 of 1

Seller(S) 2

SELLER

NewSpring Capital

Radnor, Pennsylvania, United States

Investor Investor Investor Investor Investor


Category Private Equity Firm
Founded 1999
PE ASSETS 3.5B USD
Size Large
Type Sector Agnostic
DESCRIPTION

NewSpring Capital is a private investment firm focused on growth companies in the Mid-Atlantic US. The Firm can provide both growth equity and junior capital to prospective companies. NewSpring's target investment size for both mezzanine and equity financing is $2 to $5 million, although for new ventures, the Firm can commit up to $10 million. Sectors of interest include specialty manufacturing, technology, business services, information technology, life science, healthcare services, and medical devices. NewSpring Capital was formed in 1999 and is based in Radnor, Pennsylvania with an additional office in Short Hills, New Jersey.


DEAL STATS #
Overall 22 of 92
Sector: Healthcare Services M&A 3 of 6
Type: Add-on Acquisition M&A Deals 11 of 52
State: Massachusetts M&A 2 of 11
Country: United States M&A 22 of 91
Year: 2014 M&A 1 of 4
PREVIOUS DEAL
DATE TARGET DEAL TYPE VALUE
2014-01-01 SUN Behavioral Health

Red Bank, New Jersey, United States

SUN Behavioral Health is a provider of various behavioral health services to children, youth, adults, and seniors. SUN Behavioral Health is based in Red Bank, New Jersey.

Buy -
FOLLOWING DEAL
DATE TARGET DEAL TYPE VALUE
2014-03-07 National Legal Services

Temecula, California, United States

National Legal Services LLC is a provider of outsourced legal, document-retrieval, and document-preparation services. National Legal Services is based in Temecula, California.

Buy -
SELLER

Three Arch Partners

San Mateo, California, United States

Category Private Equity Firm
Founded 1993
PE ASSETS 1.0B USD
Size Large
Type Sector Agnostic
DESCRIPTION

Three Arch Partners is an investor in healthcare companies, including medical devices, diagnostics, and healthcare services. Three Arch primarily invests in early stage companies, however the Firm will consider select later stage investments. Three Arch typically invests alongside others and looks to commit $100k to $15 million per investment. Three Arch Partners was formed in 1993 and is based in San Mateo, California.


DEAL STATS #
Overall 18 of 24
Sector: Healthcare Services M&A 3 of 5
Type: Add-on Acquisition M&A Deals 12 of 16
State: Massachusetts M&A 1 of 1
Country: United States M&A 18 of 24
Year: 2014 M&A 2 of 5
PREVIOUS DEAL
DATE TARGET DEAL TYPE VALUE
2014-01-06 iScience Interventional

Menlo Park, California, United States

Medical device company and developer of revolutionary microcatheter and breakthrough procedures for eye diseases, including glaucoma.

Sell -
FOLLOWING DEAL
DATE TARGET DEAL TYPE VALUE
2014-05-12 AccessClosure

Santa Clara, California, United States

AccessClosure, Inc. is a medical device company that is pioneering innovative access site management products designed to address the complex challenge of vascular closure during interventional and diagnostic procedures.

Sell $320M