American Capital, Ltd. sold its portfolio company MW Acquisition Corporation, a behavioral treatment provider known as The Meadows and headquartered in Wickenburg, Arizona, for proceeds of $97 million. The buyer is Alita Care, LLC, a portfolio company of Kohlberg & Company, L.L.C.
American Capital, Ltd. (Nasdaq: ACAS) (“American Capital”) announced today that its portfolio company MW Acquisition Corporation (“The Meadows” or the “Company”) was sold to Alita Care, LLC, a portfolio company of private equity firm Kohlberg & Company, L.L.C. American Capital received $97 million in proceeds, subject to post-closing adjustments. Over the life of the investment, American Capital realized 2.6 times its equity investment and generated a 28% compounded annual return on equity. American Capital’s compounded annual rate of return earned on its debt and equity securities over the life of its investment was 22%, including dividends, interest, realized gains and fees.
Headquartered in Wickenburg, Arizona, The Meadows is the industry leader in providing treatment for trauma and for treating people struggling with addiction, eating disorders, and related mental health conditions. The Meadows offers treatment across inpatient and outpatient settings combining traditional behavior modification and cognitive reframing principles with a holistic focus on the root causes of patients’ addictions and disorders.
American Capital invested in a One Stop Buyout® of The Meadows in February 2006 and subsequently acquired Remuda Ranch, a provider of inpatient, residential and outpatient eating disorder treatment programs, in December 2012 (for more informationclick here).
“We are extremely pleased with the outcome of our investment in The Meadows,” said Jon Isaacson, Managing Director at American Capital. “The success of our investment is a result of a strong management team who focused on clinical innovation and excellence. Since our initial investment, The Meadows has broadened its market leadership through acquisition and multiple new program launches, which has created a differentiated platform for future growth.”
Brian Kirschbaum, Vice President at American Capital, said, “We want to thank Jim Dredge and the entire Meadows team for their steadfast commitment to building the strongest clinical franchise in the behavioral health services sector. The team’s dedication and pristine execution have greatly improved the lives of its patients and their families.”
Since American Capital’s 1997 IPO through the first quarter of 2016, it has earned a 9% compounded annual return, including interest, dividends, fees and net gains, from realizations of senior debt, subordinated debt, equity and structured products investments, totaling approximately $28 billion of committed capital. American Capital earned a 15% compounded annual return on the exit of its equity investments, including dividends, fees and net gains. For a chart showing a partial listing of American Capital’s exited portfolio companies, click here.
ABOUT AMERICAN CAPITAL
American Capital, Ltd. (Nasdaq: ACAS) is a publicly traded private equity firm and global asset manager. American Capital, both directly and through its asset management business, originates, underwrites and manages investments in middle market private equity, leveraged finance, real estate and structured products. American Capital manages $20 billion of assets, including assets on its balance sheet and fee earning assets under management by affiliated managers, with $77 billion of total assets under management (including levered assets). Through a wholly owned affiliate, American Capital manages publicly traded American Capital Agency Corp. (Nasdaq: AGNC), American Capital Mortgage Investment Corp. (Nasdaq: MTGE) and American Capital Senior Floating, Ltd. (Nasdaq: ACSF) with approximately $10 billion of total net book value. American Capital and its affiliates operate out of six offices in the U.S. and Europe. For further information, please refer to www.AmericanCapital.com.
SOURCE American Capital, Ltd.