New Mainstream buys Constellation Behavior Health

New MainStream Capital said May 16 that it has acquired Constellation Behavioral Health LLC. Financial terms weren’t announced. Mill Valley, California-based New Mainstream offers specialized treatment programs for addiction, mental health and co-occurring behavioral health disorders. Coker Capital Advisors served as financial advisor to CBH and Perkins Coie LLP acted as legal advisor to the Company. McDermott Will & Emery provided legal advice to NMS.

PRESS RELEASE

NEW MAINSTREAM CAPITAL ANNOUNCES ACQUISITION OF

CONSTELLATION BEHAVIORAL HEALTH, LLC

New York, NY, May 16, 2016 – New MainStream Capital (“NMS”), announced today that, in partnership with

company CEO and Founder William “Bill” Morrison, it has acquired Constellation Behavioral Health, LLC (“CBH” or

the “Company”), a Mill Valley, CA based company that offers specialized treatment programs for addiction, mental

health and co-occurring behavioral health disorders. NMS anticipates providing additional equity capital to support

CBH’s future growth, both through strategic acquisitions and de novo facility openings.

 

Founded in 2010, from day-one CBH has focused on the fundamental belief that excellent treatment outcomes

require an intense focus on diagnosing and treating co-occurring disorders, and that a program’s success ultimately

depends on a strong combination of best-in-class medical experts, clinical talent and professional management.

CBH is nationally recognized for its state of the art diagnostic testing and assessment capabilities, its world-class

clinical and medical teams, and its ability to create life transforming treatment experiences. Today the Company

operates two sets of facilities: Alta Mira and Bridges to Recovery. Alta Mira is a 30-bed facility located in Sausalito,

CA encompassing 30,000 square feet that offers treatment services to meet the needs of adults with addiction and

co-occurring psychiatric disorders. Bridges to Recovery is a 12-bed facility located in Los Angeles, CA that offers

treatment services to meet the needs of adults with psychiatric, psychological and co-occurring addiction disorders.

 

“I am thrilled to be partnering with New MainStream in order to continue pursuing our vision at Constellation for

creating industry leading behavioral health programs” said Bill Morrison. “The investment team at NMS brings a lot

more than capital to CBH. They have deep domain experience in the healthcare services space and a proven track

record of helping management teams execute against their strategic growth plans.”

 

Kevin Jordan, NMS Co-Founder and Managing Partner remarked, “We have been sifting through numerous

investment opportunities in the behavioral health space for some time now, seeking a high caliber platform to build

upon. In CBH we’ve found everything we were looking for – clinical excellence, an existing infrastructure to support

growth, and a fabulous management team.”

 

Together, NMS and CBH plan to grow through a combination of de novo startups and strategic acquisitions across

the behavioral health treatment spectrum including substance abuse and chemical dependency, process

addictions, mental health and eating disorders. Luis Gonzalez, NMS Managing Director said “CBH is a market-

leading provider with a best-in-class clinical model that is well positioned for growth, both organically and through

strategic acquisitions. We look forward to partnering with Bill and his team in building on the substantial success

that the Company has achieved in serving the growing demand for behavioral health services.”

 

Coker Capital Advisors served as exclusive financial advisor to CBH and Perkins Coie LLP served as legal advisor

to the Company. McDermott Will & Emery provided legal advice to NMS.

 

 

 

 

About Constellation Behavioral Health

 

Constellation Behavioral Health is an organization dedicated to developing highly specialized treatment programs

serving individuals and families suffering from addiction, mental health and co-occurring disorders. Constellation

programs include its flagship facility, Alta Mira Recovery Programs, a nationally recognized adult residential dual

diagnosis treatment center located in Sausalito, CA, and Bridges to Recovery, a premier residential treatment

program for individuals struggling with mental health disorders located in Los Angeles, CA. Our mission is to provide

inspiration, strength and hope for individuals suffering from addiction and mental health disorders so that they can

heal, transform their lives, and realize all the possibilities of a life in recovery. Our vision at Constellation is to partner

with entrepreneurs to create best-in-class treatment programs founded on a common set of principles, including

clinical and medical excellence, a spirit of innovation, and superior patient experiences.

 

For more information about CBH and its treatment programs visit www.constellationbehavioralhealth.com.

 

About New MainStream Capital

 

New MainStream Capital is a private investment firm specializing in strategic equity investments and leveraged

buyouts of lower middle market companies. NMS focuses on companies headquartered in the U.S. poised to

benefit from sustainable growth trends. NMS has invested across a broad spectrum of industries, with particular

concentration on service oriented businesses in the following three sectors: Healthcare Services, Business

Services, and Consumer Products and Services.

 

For additional information on NMS, visit the firm’s website at www.nms-capital.com.