PE-Backed Pyramid Healthcare Buys October Road

Pyramid Healthcare Inc., which is backed by Clearview Capital Fund II, L.P., has acquired October Road Inc. Formed in 2005 and based in Asheville, N.C., October Road provides outpatient mental health and substance abuse services. Terms of the deal were not released.



Clearview Capital Fund II, LP recently announced that its portfolio company, Pyramid Healthcare, Inc., has acquired October Road, Inc.


The Braff Group (TBG) served as exclusive merger and acquisition advisor for October Road.


Headquartered in Asheville, NC, October Road provides a full continuum of outpatient mental health and substance abuse services to adults and adolescents using creative, evidence-based practices.  Founded in 2005, October Road has achieved significant growth due largely to its experienced management team and the exceptional quality of care provided to its patients.  The Company is accredited by the Commission on Accreditation of Rehabilitation Facilities (“CARF”) and is designated a Critical Access Behavioral Health Agency (“CABHA”) in North Carolina.


The closing of the October Road transaction represents Pyramid’s second successful add-on acquisition under Clearview’s ownership, and marks Pyramid’s initial expansion outside the Commonwealth of Pennsylvania.   “This acquisition fits perfectly with our acquisition strategy, which seeks to extend Pyramid’s reach beyond Pennsylvania,” said Matthew Blevins, Vice President of Clearview.  “We are actively seeking additional add-on opportunities in the behavioral health sector to complement Pyramid’s steady organic growth.”


“We are excited about the acquisition of October Road,” said Jonathan Wolf, Pyramid’s Chief Executive Officer. “They provide effective, evidence-based services in key markets in North Carolina and we look forward to having them as the newest members of the growing Pyramid Healthcare network of behavioral health services.”


“According to proprietary Braff Group research, within behavioral health and social services – the fastest growing sector in health care service mergers and acquisitions – providers focusing on mental health and substance abuse are among the most sought after acquisition candidates,” commented Nancy Weisling, one of TBG’s Managing Directors focused exclusively in behavioral health.  “This is particularly true for private equity groups such as Clearview, which have contributed greatly to the record breaking activity we see today in behavioral health,” concluded Ted Jordan, TBG Managing Director for Behavioral Health and Social Services. Mr. Jordan, along with Ms. Weisling, led the deal team representing October Road.


About Pyramid Healthcare: Based in Altoona, PA, Pyramid Healthcare is a leading provider of substance abuse and mental health treatment services to adults and adolescents throughout Pennsylvania. Pyramid operates 26 residential and outpatient treatment facilities throughout the Commonwealth.


About Clearview Capital: Clearview Capital, LLC is a private investment firm specializing in the acquisition and recapitalization of North American companies with operating profits of up to $20 million. The firm’s principals have a long and successful track record of completing transactions and of working collaboratively with management to create and realize value. Clearview is currently making investments through a $250 million committed fund, Clearview Capital Fund II, LP.


About The Braff Group: The Braff Group is the leading merger and acquisition advisory firm specializing in the behavioral health and social services, hospice, home health care, specialty pharmacy, infusion therapy, home medical equipment, and health care staffing market sectors.  The firm provides an array of transactional advisory services including sell side representation, debt and equity recapitalizations, strategic planning, and valuation.  Since being founded in 1998, The Braff Group has completed more than 190 transactions. From 2008-2010, based upon deals completed, the firm was ranked number 1 in US Healthcare Services transactions (Source: Thomson Reuters).