Crossroads, Revelstoke-backed opioid-treatment provider, heads to auction block

  • Revelstoke investment dates to January 2015
  • Southeast-focused Crossroads operates 29 outpatient clinics
  • Also coming to market in ’19: Webster-backed BayMark

About four years into its investment, Revelstoke Capital Partners is bringing Crossroads Treatment Centers back to market, according to two people familiar with the matter.

Harris Williams has been enlisted to run a sales process for the Greenville, South Carolina, network of opioid-treatment clinics, the people said. The process is expected to formally kick off in February, they added.

Crossroads is expected to be marketed off an Ebitda figure just north of $20 million, they said.

The auction for Crossroads would come as Webster Capital-owned industry giant BayMark Health Services preps for its sales process. Goldman Sachs has been retained to advise on an auction poised to launch in the second half, Buyouts reported.

PE sponsors have proven eager to invest behind healthcare platforms looking to combat the nation’s worsening opioid-abuse problem. Other PE shops with investments in the space include Linden Capital Partners and Housatonic Partners, while those with former investments include Waud Capital Partners and Bain Capital.

Founded in 2007, Crossroads provides medication-assisted treatment for opiate addiction, using both methadone and suboxone. Services are offered through 29 locations across Colorado, Georgia, Kentucky, Massachusetts, North Carolina, South Carolina, Texas and Virginia.

Revelstoke, the Denver middle-market PE firm focused on healthcare and related business services, invested in Crossroads in January 2015.

Among recent trades in the sector, Frontenac in December sold Behavioral Health Group to fellow Chicago PE shop Vistria Group. Terms weren’t disclosed, but the transaction was valued on the upper end of the $250 million to $300 million range, sources have told Buyouts.

In other activity, publicly traded Acadia Healthcare recently ousted Chairman and CEO Joey Jacobs. The C-suite reshuffling followed months of rumors suggesting that firms including KKR and TPG had expressed interest in the debt-ridden behavioral-health company.

Representatives of Revelstoke and Harris Williams didn’t immediately return requests for comment, while those with Crossroads could not be reached.

Action Item: Reach out to Revelstoke at +1 303-953-3232