At a cost of $6.6 million, American Addiction Centers’ (AAC) latest acquisition is Sunrise House Foundation, a New Jersey not-for-profit that has in-network arrangements. The Sunrise deal will add to the AAC portfolio a 110-bed, 87,000 square-foot substance abuse treatment center in Lafayette, N.J., as well as 30 sober living beds and two outpatient treatment programs around the state.
The closing is expected during the third quarter of 2015. AAC expects the facility to be Adjusted-EBITDA neutral until the expected $5 million in renovations are completed on the 22-acre inpatient property.
Founded in 1983 on the site of a former Franciscan monastery, the Sunrise inpatient facility will retain current CEO Philip Horowitz to oversee facility operations following the closing, according to the company’s announcement.
“Sunrise House has run an effective 12-Step program for over 30 years with extensive clinical outcome studies and significant in-network and trade union contracts. We look forward to improving the campus setting and facilities and continuing their original vision and passion for treating addiction,” said Michael Cartwright, Chairman and CEO, in a statement. “The addition of in-network inpatient beds and the outpatient centers will complement the other facilities we are adding in the region and increase our presence in one of our larger referral bases.”
AAC has been on buying spree, purchasing a new headquarters building about a mile away from its current home in Brentwood, Tenn., and several treatment facilities in California, Rhode Island and Florida. In February, it also purchased a former convent and a total of 96 acres in Ringwood, N.J., for $6.5 million in cash. Like Sunrise House, the Ringwood property will undergo significant renovation.