The behavioral health care M&A market recovered in the second quarter of 2019, with 23 publicly announced transactions compared with 14 acquisitions in the first quarter, according to data from HealthCareMandA.com. Compared with the second quarter of 2018, behavioral health care M&A activity increased by roughly 10%, when just 21 acquisitions were announced. There were no transactions with a disclosed price this quarter, as was the case in the second quarter of 2018.
Private equity firms and their portfolio companies dominated the sector as buyers, accounting for 65% of the announced transactions. “Investor interest in this sector shows no sign of waning,” commented Lisa E. Phillips, editor of The Health Care M&A Report, which publishes the data. “With demand for all aspects of behavioral health services growing, we expect to see strong M&A activity through the end of the year, at least.”
The largest deal in the sector, if it had a disclosed price, would have most likely been Anthem Inc.’s acquisition of Beacon Health Options to create one of the most comprehensive behavioral health networks in the country. The sellers in that transaction were Bain Capital Private Equity and Diamond Castle Holdings. Other notable deals involved Kadiant, which launched February 2019 as a partnership between Lani Fritts, TPG Capital, and Vida Ventures. The company’s four announced acquisitions aim to build a platform of firms focusing on Applied Behavior Analysis therapy and related critical services to individuals diagnosed with autism spectrum disorder. Three of its targets were in California and one was in Atlanta.
All quarterly results are published in The Health Care M&A Report for all 13 sectors of health care, which is part of the HealthCareMandA.com investment research source. For information, or to order the report, call 800-248-1668. Irving Levin Associates is celebrating more than 70 years of delivering exclusive M&A intelligence to its sophisticated audience of seniors housing and healthcare investors. The company was established in 1948 and has headquarters in Norwalk, Connecticut. The company publishes research reports and newsletters and maintains databases on the healthcare and senior housing M&A markets.