Lindsay Goldberg preps for potential $800m-plus sale of Refresh Mental Health

The upcoming process comes on the heels of TPG’s $1.2 billion bet for another behavioral health treatment company, LifeStance Health.

Lindsay Goldberg is gearing up for a sale of Refresh Mental Health, according to four sources familiar with the matter. 

Jefferies has been enlisted for financial advice on an upcoming process, the people said. The timing of the process is uncertain. 

The Jacksonville, Florida, operator of mental health treatment centers is projecting approximately $40 million in 2020 EBITDA, some of the sources said. The company could command a valuation north of $800 million in a transaction, they said.  

Refresh, with clinics across more than 20 states and over 150 locations, provides mental health and eating-disorder services, with a focus on in-network operations. It also offers programs specializing in substance abuse and addiction treatment, relationship counseling and telecounseling services, among other things.   

The company is led by CEO Steve Gold, who previously led Crestview Capital Partners, a healthcare roll-up micro fund that owned and operated several outpatient mental health centers.

According to Crunchbase, Lindsay Goldberg acquired Crestview in 2017, the year of Refresh’s founding.

The backdrop of the behavioral health industry in which Refresh operates has so far fueled increasing private equity interest through the downturn. 

Unemployment and loss of life will create long-term distress, boosting demand for providers of mental health services. At the same time, disruption to the healthcare industry has cast a light on the value of telehealth, with behavioral health considered a particularly applicable area of such virtual services. 

For example, the anticipated process for Refresh comes on the heels of TPG’s $1.2 billion bet for another behavioral health company, LifeStance Health.

TPG, prevailing over a handful of large buyout funds in a Jefferies-run process, initially provided a full equity backstop to support the deal in April, PE Hub wrote. Under an equity backstop, the buyer commits to underwrite the full purchase price with an ability to obtain debt financing later.

Capital One and HPS Investment Partners subsequently stepped up, providing $225 million through a unitranche debt financing to support the transaction, sources said at the time. 

Summit Partners and Silversmith Capital Partners, which backed LifeStance in 2015 upon its formation, remained minority investors in LifeStance, one of the sources said.

Elsewhere, Webster Equity Partners is considering exploring a single-asset continuation vehicle for BayMark Health Services, a source with knowledge of the firm recently told PE Hub. BayMark is the nation’s largest provider of opioid-treatment services.

Lindsay Goldberg and Jefferies declined to comment. Refresh Mental Health couldn’t immediately be reached. 

Action Item: Check out Lindsay Goldberg’s latest Form ADV