American Addiction Centers, through its subsidiary AAC Rhode Island Acquisition Sub, LLC, has signed a definitive agreement to acquire Clinical Services of Rhode Island, Inc. (CSRI) an outpatient provider, for $665,000 in cash and $1,335,000 worth of restricted shares of AAC Holdings’ common stock. The acquisition is expected to close during the second quarter of 2015.
CSRI operates outpatient treatment facilities located in Greenville and Portsmouth and its new South Kingstown location, which just opened in January.
CSRI co-owners Reinhard Straub and Peter Letendre will continue as Clinical and Business Development Liaison for American Addiction Centers, Inc., and CEO and Clinical Director of Rhode Island Operations, respectively. The substance-use treatment centers generated revenue of approximately $1.2 million and adjusted EBITDA of approximately $0.2 million in 2014.
“Extending our outpatient center network is a critical and necessary component of the addiction treatment services we provide our clients," Michael Cartwright, Chairman and Chief Executive Officer of AAC Holdings, said in a statement. "CSRI will join our newly licensed outpatient center in Las Vegas, Nevada, and a new outpatient center under construction in Arlington, Texas, giving us the ability to provide a full continuum of care and transition clients as they become ready to leave our inpatient centers and step down their treatment."
According to CSRI, the clinicians place heavy emphasis on abstinence-based treatment and do not endorse maintenance drugs like suboxone and methadone on a long term basis.