Levine Leichtman taps bank for 2022 sale of eating disorder platform, Vistria reaps more than 4x return on Agape Care, Genstar and GI recap Daxko

LLCP's Monte Nido readies for sale while Vistria makes more than 4x its money on Agape Care.

It’s hump day, hubsters!

If you’re already planning for next year, here’s another behavioral health deal coming down the pike you should keep tabs on. Six years into its investment in the eating disorder treatment platform, Levine Leichtman Capital Partners is gearing up for a sale of Monte Nido.

Harris Williams is engaged for sell-side financial advice, with a process poised to start in 2022. Sources placed the company’s EBITDA at approximately $50 million.

Behavioral healthcare has been a consistent target of investment, with private equity appetite arguable at all-time highs through the pandemic. The growing eating disorder segment is considered an outgrowth of broader behavioral healthcare needs. Add to that an access problem that investors are looking to address, the new owners of Eating Recovery Center recently told me.

Apax Partners and Oak HC/FT earlier this month joined hands to buy ERC, which valued the Denver-based eating disorder platform at $1.4 billion.

In other relevant activity of note, Patient Square Capital in September bought Summit BHC, a substance abuse treatment and psychiatric services platform, for an enterprise value of $1.3 billion. And, Onex Partners in July completed its investment in Newport Healthcare in a deal valuing the network of teen-focused mental health treatment centers at $1.3 billion.

Exit: The Vistria Group exited its second hospice care investment in just over a year. This time around, it made more than 4x its money on Agape Care, whose care is focused in South Carolina and Georgia, according to a source with knowledge of the matter.

Three years into its investment, the Chicago-based private equity firm announced Tuesday the sale of Agape to Ridgemont Equity Partners.

Vistria knows hospice care well, having now chosen pockets of the country and formed market positions on three separate occasions. Its playbook has centered on regional density with the ability to control clinical outcomes versus a nationally dispersed model, and that has seemingly worked well.

Besides Agape, it currently owns western US-centric Mission Healthcare. And, in September 2020, it sold St Croix Hospice, an end-of-life care provider serving the Midwest, to HIG Capital. The deal was valued at $580 million, PE Hub reported.

Fitness-payments: On the heels of Mindbody’s acquisition of ClassPass — through which two scale tech platforms for fitness studios joined hands while gaining a second investor — another pair of firms are looking to capture the growth (and rebound) of the industry.
Genstar Capital and GI Partners recapitalized Daxko, which provides membership management software and integrated payment solutions to member-based health and wellness organizations. That includes large health clubs, boutique fitness studios, YMCAs, and JCCs. Credit Suisse Securities and William Blair advised the sellers on the deal.

The company, which GI became the majority owner of in September 2016, has grown to serve customers spanning 55 countries, nearly 19,000 facilities, and over 25 million-plus members. Read PE Hub’s brief on the deal.

That’s it for me! Have a great rest of your week. Hit me up with feedback, tips n’ gossip or anything else at springle@buyoutsinsider.com.