Formation Capital, Safanad exit RHA Health Services


Formation Capital and Safanad Limited said Aug. 5 that they sold the parent company of RHA Health Services LLC to Blue Wolf Capital. Financial terms weren’t announced. RHA provides services to individuals with intellectual and developmental disabilities, behavioral health needs and substance use challenges.

PRESS RELEASE

ATLANTA and NEW YORK, Aug. 5, 2019 /PRNewswire/ — Formation Capital (“Formation”) and Safanad Limited (“Safanad”) announce the sale of the parent company of RHA Health Services, LLC (“RHA”), the comprehensive provider of services to individuals with intellectual and developmental disabilities (“I/DD”), behavioral health needs and substance use challenges to an affiliate of Blue Wolf Capital.
With operations in Georgia, Florida, North Carolina, and Tennessee, RHA serves 25,000 people each year. RHA serves these individuals across 440+ locations in four states in the Southeastern USA. Founded in 1989, RHA began as a small collection of homes in North Carolina offering support to people with intellectual and developmental disabilities. Over the past 30 years, RHA has become one of the leading I/DD providers in North Carolina with a prominent presence in Georgia, Tennessee and Florida.
RHA’s homes serve to coordinate health and provide habilitative services and training to enable both adults and children with developmental disabilities to function at the highest level possible. RHA’s behavioral health segment operates a variety of clinics and outpatient facilities and provides education services that promote healthy choices and realistic goals, improving a person’s network and encouraging independence.
In 2015, Formation and Safanad acquired RHA to help it grow operations within its current communities and to expand its reach and services in the Southeastern United States. Since the acquisition, RHA has doubled its EBITDA and added additional service lines to better serve its patient population. The exit generates a strong return to Formation’s and Safanad’s investors.
Brian Beckwith, CEO of Formation, shared, “As with all of our healthcare investments, a primary focus is the quality of the care delivered by the management team and RHA exceeded expectations in this area. A resident focused approach will remain a focal point in new investments, which often leads to excellent returns. We look forward to following RHA’s continued success.”
Kamal Bahamdan, CEO and Founder of Safanad, commented, “We invested in RHA with a conviction that its market leading platform would provide exceptional care thus generating strong returns in a growing sector. Healthcare has always been an important sector to Safanad. RHA has been another successful healthcare investment, and we look forward to seeing the company to go on to even greater success under new ownership.”
About Formation Capital
Founded in 1999, Formation Capital is a private investment management firm focused on seniors housing and care, post-acute real estate and care, and health care services providers. Formation has an integrated investment platform that combines acquisition and asset management specialization.
Headquartered in Atlanta, Georgia, Formation has $5.5+ billion in total assets under management. Formation’s current portfolio consists of multiple operating companies and 480+ healthcare facilities located across the United States and the United Kingdom.
For more information, visit www.formationcapital.com.
About Safanad
Founded in 2009, Safanad is a private equity and real estate investment firm. We identify compelling value-creation opportunities in the US and Europe and commit patient, flexible capital both from our own balance sheet and on behalf of more than 80 co-investment partners. We partner with leading operating teams to build sustainable, scalable and professionally-run platforms that target superior returns. Our 50-strong team in New York, London and Dubai has completed more than 40 transactions totaling $10 billion, with investments in healthcare, education, student housing and data centers.
For more information, visit www.safanad.com.
Moelis & Company LLC served as lead financial advisor, and Cain Brothers, a division of KeyBanc Capital Markets Inc. also served as financial advisor to the sellers. Skadden, Arps, Slate, Meagher & Flom provided legal counsel to RHA. Arnall Golden Gregory provided regulatory counsel to RHA.