The recently launched Odyssey Behavioral Healthcare has completed the deals for mental health treatment centers Pasadena Villa and Lifeskills of South Florida—its first two acquisitions—with backing from private equity firm Nautic Partners, LLC. Nautic and Odyssey management plan to invest up to $50 million of equity capital in new growth.
Pasadena Villa offers psychiatric residential treatment centers, day treatment and supportive housing for adults in Florida and Tennessee, and is Joint Commission accredited. Lifeskills is a CARF-accredited South Florida treatment center that offers residential, transitional and outpatient substance abuse/dependence treatment for adults.
Odyssey, headquartered in Brentwood, Tenn., was formed to build a diversified platform of behavioral healthcare facilities across the treatment spectrum in psychiatric and addiction care. Scott Kardenetz, CEO, is a 25-year veteran of the behavioral healthcare industry, and previously served in leadership positions with Ardent Health Services, Psychiatric Solutions and Universal Health Services.
"With their impressive facilities, top clinical staff, and exceptional reputations within the industry, I believe that Pasadena Villa and Lifeskills of South Florida give Odyssey an impressive platform from which to launch our company," said Kardenetz in a statement.
Goodwin Procter advised Nautic Partners and Odyssey. Brentwood Capital Advisors acted as financial advisor to Pasadena Villa. The Braff Group served as the exclusive mergers and acquisitions advisor to Lifeskills. MidCap Financial provided financing for the transaction.
"This marks yet another private equity platform investment in behavioral health," said Ted Jordan, Braff Group Managing Director for Behavioral Health Care, in a statement. "We expect this trend to continue, with a growing emphasis on the development of a full continuum of services and settings, which in aggregate, promises to be an even bigger market than the strictly 'high-end' residential programs that have dominated the M&A scene to-date."
Odyssey will seek to expand the platform through de novo development and acquisition.