Lee Equity Partners is prepping portfolio company Eating Recovery Center for a sale early next year, two banking sources said.
Lee Equity has hired a banker, the sources said.
Denver-based Eating Recovery provides treatment for adults, adolescents and children with eating disorders such as anorexia, bulimia and binge eating. The company has 25 locations nationwide, according to its website.
An Eating Recovery spokeswoman said in an email the information regarding a sale was “not accurate.” The company declined further comment.
Lee Equity acquired the company in January 2013 via a recapitalization. The firm invested $66 million at the time, a third source said. The seller at the time was Trinity Hunt Partners. William Blair advised Eating Disorder during that sale.
The proposed sale comes as Lee Equity has been restructuring its one and only fund. The firm gave LPs the option to sell their interests at a premium to net asset value or to roll into a new vehicle that will house the remaining portfolio companies, Buyouts reported in August.
Lee Equity used its first and only fund to invest in Eating Recovery. Lee Equity Partners I closed on about $1.1 billion around late 2008. The fund produced an 8.49 percent average IRR and a 1.32x average multiple as of June 30, data provider Bison said.
Earlier this month, Lee Equity sold PDR Network, a healthcare information provider, to Genstar Capital.
In October, Lee Equity sold a majority of financial planning firm Edelman Financial Services to Hellman & Friedman LLC. The deal was valued at more than $800 million, the Wall Street Journal said.
Executives for Lee Equity did not return calls for comment. William Blair declined comment.
Action Item: Visit the Eating Recovery website here: https://www.eatingrecoverycenter.com
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