CCMP Capital Advisors LP said Aug. 30 that it has agreed to buy a controlling stake in Eating Recovery Center. Financial terms weren’t announced. Lee Equity Partners and certain other investors were the sellers. Eating Recovery provides specialized treatment for individuals with eating disorders. Antares Capital LP and Golub Capital Markets LLC are providing financing. Ropes & Gray acted as legal counsel to CCMP. Moelis & Company served as financial adviser to ERC and Lee Equity, while Perkins Coie was legal counsel.
NEW YORK and DENVER, August 30, 2017 — CCMP Capital Advisors, LP (“CCMP”) and Eating Recovery Center (“ERC”) today announced that they have entered into a definitive agreement under which affiliates of CCMP will acquire a controlling interest in Eating Recovery Center, a leading provider of specialized treatment for individuals with eating disorders, from Lee Equity Partners and certain other investors. The company’s Founding Partner and Chief Executive Officer, Dr. Ken Weiner, the management team and the clinical team will remain in place and are committed to expanding ERC’s business to meet the company’s mission. Terms of the transaction were not disclosed.
Eating Recovery Center was founded by a team of leading experts whose goal was to fuse evidence-based findings and innovation to create a center of excellence for the treatment of eating disorders. Eating Recovery Center is the only fully vertically integrated national healthcare system exclusively dedicated to the treatment of serious eating disorders and related conditions at all levels of severity and stages of the illness. ERC treats patients of all genders and ages, including adults, adolescents and children, using multidisciplinary treatment teams who understand the complexity of eating disorders and are committed to achieving lasting recovery.
“We are excited to partner with Dr. Weiner, a nationally recognized expert in the treatment of eating disorders, and his talented management team, to acquire Eating Recovery Center, which has become a market leader through its compassionate, expert-based care focused on strong clinical outcomes,” said Greg Brenneman, CCMP Executive Chairman and Managing Director.
“Eating Recovery Center is making a real difference in the lives of those suffering from eating disorders”, said Kevin O’Brien, CCMP Managing Director. “We look forward to partnering with management to continue to support this world-class company and team.”
“Eating Recovery Center was designed by an expert team of professionals whose diverse backgrounds span the development, delivery and management of effective eating disorders treatment programs,” said Dr. Ken Weiner, Eating Recovery Center Founding Partner and Chief Executive Officer. “With their deep experience and long track record, we are confident CCMP is the ideal partner to support us in achieving our goal of helping even more individuals and their families in their path to lasting recovery.”
Dr. Weiner also added, “The Lee Equity team shared our vision to extend our clinical excellence to serve a large and often overlooked national patient population. Throughout our partnership, Lee Equity provided strategic, financial, marketing and operational support so that we could achieve rapid growth to high need markets, while maintaining the integrity of our medical care.”
“Eating Recovery Center fit within our specialty clinical care investment thesis in behavioral health. We partnered with management due to its strong leadership, impeccable track record of clinical excellence, and leading regional market position which was poised for growth,” said Lee Equity Partner Geoff Lieberthal.
Lee Equity Partner Yoo Jin Kim added, “We greatly appreciate the efforts of ERC’s management team who demonstrated exceptional clinical and business acumen throughout our partnership. Together with Dr.
Weiner and the management team, we built a high performance, leading national brand with quadruple the facility footprint. It was a privilege to work with them to position the Company for its next stage of growth.”
The transaction is expected to close in the third quarter of 2017, subject to customary closing conditions. Antares Capital LP and Golub Capital Markets LLC are providing the financing and Ropes & Gray is acting as legal counsel to CCMP. Moelis & Company is serving as the exclusive financial advisor and Perkins Coie is acting as legal counsel to ERC and Lee Equity Partners.
About Eating Recovery Center
Headquartered in Denver, Colorado, Eating Recovery Center provides comprehensive treatment for eating disorders including anorexia, bulimia, binge eating disorder and other unspecified eating disorders. With 25 centers across the United States, Eating Recovery Center offers healing and hope for a lasting recovery to individuals and families suffering with an eating disorder. Utilizing a full continuum of care, Eating Recovery Center provides expert behavioral health and medical treatment in an environment of compassion, competence, collaboration, and integrity.
About CCMP Capital
CCMP Capital Advisors, LP (“CCMP”) specializes in middle market buyouts and growth equity investments of $100 million to $500 million in North America and Europe. CCMP focuses on generating alpha through the operational transformation and growth of its portfolio companies. With offices in New York, Houston and London, CCMP invests in three primary industries: Consumer, Industrial and Healthcare. Selected investments under management include: Badger Sportswear, The Hillman Group, Jamieson Wellness, Jetro Cash & Carry, Milacron, PQ Corporation, Pure Gym, Shoes For Crews and Truck Hero.
About Lee Equity
Lee Equity Partners is a New York–based private equity firm that partners with successful management teams to build companies with strong growth potential. Lee Equity targets equity investments of $50 to $100 million in middle market control buyouts and growth capital financings in companies with enterprise values of $100 million to $500 million that are located primarily in the United States. The firm invests in a range of industries where the team has deep relationships developed over decades, including financial, healthcare and business services, consumer and media. For more information, please visit www.LeeEquity.com.