Just two months after becoming a public company, American Addiction Centers (AAC) has entered into an agreement to acquire Recovery First, a Florida-based provider of substance abuse treatment and rehabilitation services, for $13 million in cash. Chairman and CEO Michael Cartwright had indicated during the company’s third-quarter investors’ report that AAC was looking for strategic acquisitions.
The Recovery First buy will add a 56-bed inpatient treatment facility, including 20 licensed detoxification beds, to AAC’s six existing facilities. As of September 30, 2014, Recovery First generated revenue of approximately $7.3 million.
"With their track record and commitment to clinical excellence, Recovery First and their team of clinicians and staff are a great fit with American Addiction Centers' passion for treating addiction," Cartwright tells Behavioral Healthcare. "The acquisition will also enable us to expand our growing presence in Florida, utilize their managed care contracts and benefit from the scale of our national sales and marketing platform."
Recovery First accepts commercial insurance coverage from several major carriers, which fits with AAC’s current model. It also offers partial hospitalization, outpatient, day/night programs, relapse treatment and sober living.