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.
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.