Investment firm Thrive Healthcare has announced the acquisition of behavioral therapist Harmony Recovery Group for an undisclosed sum.
This sale includes 10 treatment facilities in Florida, North Carolina, Tennessee, New Jersey and Massachusetts.
Harmony Recovery Group, based in Charlotte, North Carolina, offers addiction and mental health treatment programs. Founded in 2015, its services include detoxification, intensive outpatient services, partial hospitalization, dual diagnosis treatment, and health and wellness programs.
“Thrive Healthcare’s acquisition of Harmony Recovery Group marks the start of an exciting new chapter for our team,” said Dr. Deja Gilbert, CEO of Harmony Recovery Group, said in a statement. “We look forward to seeing the business continue to grow and are confident that Harmony will realize its full potential, serving all types of behavioral healthcare needs, under the leadership of Thrive Healthcare’s esteemed Board of Directors led by Mr. Steve Fishman.”
Thrive Healthcare provides capital and strategic support to its operational and real estate partners. The focus is on psychiatric hospitals, residential substance abuse treatment centers, outpatient treatment programs, and specialized behavioral health.
While behavioral health deals slowed in the first half of the year, activity picked up again in the third quarter. There were a total of 48 behavioral health deals in the third quarter, up 50% from the previous quarter, according to a new report from M&A consultancy Mertz Taggart.
Addiction treatment deals also saw a quarter-over-quarter increase. There were a total of 14 addiction treatment deals in the third quarter, up from nine in the second quarter. In addition, the number of mental health deals increased from 18 in the second quarter to 36 in the third quarter.
“We expect a strong end to 2022 and a good start to 2023 based on our current deal pipeline and client activity,” Kevin Taggart, managing partner at Mertz Taggart, said in the report. “We are still very optimistic about the lower middle market for behavioral health, with outpatient mental health services leading the way.”
Other notable addiction treatment acquisitions include Lee Equity Partners’ acquisition of Bradford Health, a provider of substance use disorders, and BayMark Health Services’ purchase of Fritz Clinic, an opioid use disorders provider.