H.I.G. Capital News
H.I.G. Growth Partners
500 Boylston Street, Suite 1350
Boston, MA 02116
H.I.G. Growth Partners Announces the Formation of Community Intervention Services and Completes the Acquisition of South Bay Mental Health
BOSTON, MA - April 17, 2012 - H.I.G. Growth Partners ("H.I.G."), the dedicated growth capital investment affiliate of H.I.G. Capital, a leading global private equity investment firm, is pleased to announce that its newly-formed portfolio company, Community Intervention Services, Inc. ("CIS" or the "Company"), has completed the acquisition of South Bay Mental Health Center, Inc. (“South Bay”). CIS was established by H.I.G. in partnership with veteran behavioral healthcare executive Kevin Sheehan, to acquire, develop and operate a national network of specialized mental health and substance abuse facilities and community-based programs. South Bay marks CIS's first acquisition and provides the Company with a strong platform for continued growth.
Headquartered in Brockton, MA, South Bay was founded by Dr. Peter Scanlon in 1986 as a single facility focused on delivering outpatient mental health services to children and families. Over the past 26 years, Dr. Scanlon has grown the operation into the largest provider of outpatient, community-based behavioral health services in the region, and will remain with South Bay as both Chief Clinical Officer and a member of the Board of Directors following the acquisition. South Bay currently offers a full continuum of clinical services to both children and adults through a network of 15 outpatient clinics across 12 markets and employs a staff of over 500 counselors, social workers, specialty therapists and developmental educators who provide treatment services to over 30,000 patients per year.
“I am very excited about the partnership with both Kevin Sheehan and H.I.G. and believe that our company will benefit greatly from their involvement." said Dr. Scanlon. "Their extensive operational expertise and ability to invest additional capital will enable us to accelerate growth and more importantly expand the delivery of care to our target patient base."
Kevin Sheehan, CEO of CIS, commented that "South Bay represents a strong initial platform with an excellent reputation with its payors, referral sources and clients, as well a demonstrated history of clinical success. We have a high degree of confidence in our ability to accelerate the growth of South Bay and ultimately build CIS into a leading national provider of diversified behavioral health and substance abuse services through de novo expansion and additional acquisitions."
Raymond James Health Care Investment Banking Group acted as the lead financial advisor to South Bay. Hinckley, Allen & Snyder LLP, served as legal counsel to South Bay, and McDermott Will & Emery, LLP served as legal counsel to H.I.G.
About Community Intervention Services
Community Intervention Services, Inc. ("CIS") was formed to acquire, develop and operate a national network of specialized mental health and substance abuse facilities and programs. CIS is backed by H.I.G. Growth Partners and led by veteran behavioral healthcare executive Kevin Sheehan, the founder and former Chairman, President and CEO of Youth & Family Centered Services, Inc. ("YFCS"). YFCS was a national provider of behavioral health services to infants, children and adolescents operating across 9 states and provided services daily to over 4,400 patients.
About H.I.G. Growth Partners
H.I.G. Growth Partners is the dedicated growth capital investment affiliate of H.I.G. Capital, a leading global private equity investment firm with over $8.5 billion of capital under management. With $500 million of committed capital, Growth Partners seeks to make both majority and minority equity investments ranging from $5 million to $30 million in strong, growth-oriented businesses with between $10 million and $100 million in revenues. Growth Partners considers investments across all industries, but focuses on certain high-growth sectors where the team has extensive in-house expertise such as healthcare, technology, internet and media, consumer products and technology-enabled financial and business services. Growth Partners strives to work closely with our management teams to serve as an experienced resource, providing broad-based strategic, operational, recruiting and financial management services from a vast in-house team and a substantial network of third-party relationships. For more information, please refer to the H.I.G. website at www.higgrowth.com.