General Catalyst Partners has recapped Oceans Healthcare. Financial terms were not announced. Lake Charles, La.-based Oceans is a provider of psychiatric facilities for geriatric patients. Co-Founders Jason Reed and Nick Guillory will remain as CEO and COO, respectively. The Braff Group advised Oceans Healthcare.
General Catalyst Partners recently announced the recapitalization of Oceans Healthcare, Louisiana’s largest provider of psychiatric facilities for geriatric patients. The strategic growth equity will be used to capitalize the organization as a foundation for its geographic expansion. As part of the transformation, Charlie Baker, former CEO of Harvard Pilgrim Healthcare, one of the country’s top-rated health benefits companies, will join Oceans as Chairman of the Board. Co-Founders Jason Reed and Nick Guillory will remain as CEO and COO, respectively and will be responsible for running the day to day business. The company also announced that David Fialkow, Brian Shortsleeve, Gabe Ling, and Charlie Baker, all of General Catalyst Partners, will join Oceans’ Board of Directors.
The Braff Group (TBG) served as exclusive merger and acquisition advisor for Oceans Healthcare.
Oceans’ unique approach is based on a platform that couples smaller facilities delivering specific care to a singular audience; while most psychiatric facilities mix patients of all age groups, Oceans singularly provides top-quality services to adults over 55 suffering from mood and behavior disturbances or progressive, degenerative illnesses. The Oceans model of providing highly-focused, individualized care has been nationally recognized for its clinical and operational excellence by the Joint Commission on Accreditation of Healthcare Organizations. In the state of Louisiana, only 15 hospitals made the Joint Commission’s Top Performers list, and two Oceans facilities were the only psychiatric providers chosen. Oceans and General Catalyst will build on Oceans’ tradition of excellence to expand its services platform beyond Louisiana.
“General Catalyst’s credo—‘entrepreneurs investing in entrepreneurs’—was extremely attractive to Oceans as we sought growth equity. I wanted a partner that would provide mentorship as well as capital,” said Jason Reed, Ocean Healthcare’s Co-Founder and CEO. “We are now positioned to build and refine our unique model—one that is focused on treating superior psychiatric care to a specific, fast-growing population by delivering the best possible care from the industry’s best employees—to new geographies.”
“The entrepreneurs behind Oceans Healthcare are creating a truly distinctive patient care delivery model in a $15-20B industry—inpatient mental health services —that has not historically focused solely on treating the needs of seniors,” said Charlie Baker, Oceans’ new Chairman. “Oceans couples a strong founding team with a unique healthcare services model to provide essential services that will improve the lives of geriatric patients and their families.”
“According to proprietary data collected and analyzed by The Braff Group, not only was 2012 another record breaking year for transactions in the behavioral health arena – 86 in all – the greatest growth was in adult mental health, Ocean’s focus, up 68% over 2012,” said Ted Jordan, Braff Group managing director for Behavioral Health and Social Services that headed up the deal team representing Oceans. Nancy Weisling, also a TBG managing director for Behavioral Health added, “With a record 26 PE sponsored deals in 2012 – 5 platform and 21 follow-on deals – private equity groups like GC continue to target this growing sector.”
About General Catalyst
General Catalyst Partners is a growth equity and venture capital firm that invests in exceptional entrepreneurs who are building the technology-based companies that will lead innovation and transform industries. Founded in 2000, General Catalyst Partners leverages its principals’ extensive operational, business development and technological expertise to provide portfolio companies with a catalyst for success through business-building and partnership development assistance. General Catalyst has offices in Cambridge, MA and Palo Alto, CA. For more information, visit: www.generalcatalyst.com.
About The Braff Group
The Braff Group is the leading merger and acquisition advisory firm specializing in the behavioral health and social services, home health care, hospice, specialty pharmacy, infusion therapy, home medical equipment, and health care staffing market sectors. The firm provides an array of transactional advisory services including sell side representation, debt and equity recapitalizations, strategic planning, and valuation. Since being founded in 1998, The Braff Group has completed more than 200 transactions. From 2008-2010, based upon deals completed, the firm was ranked number 1 in US Healthcare Services transactions (Source: Thomson Reuters). www.thebraffgroup.com.
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