Eating Recovery Center (ERC), which operates 25 centers in seven states, has entered into a deal allowing CCMP Capital Advisors, LP to acquire a controlling interest in ERC from private equity firm Lee Equity Partners. Terms of the deal were not disclosed, but the transaction is expected to close in the third quarter of 2017.
According to the announcement, ERC’s founder and CEO, the management team and the clinical team will remain in place. The organization treats adults, adolescents and children, using multidisciplinary treatment team within the full continuum of care. ERC also has commercial insurance contracts and is accredited by the Joint Commission.
The Wall Street Journal reported in June that ERC was for sale and noted that the organization was projected to produce about $45 million in EBITDA this year. Lee Equity purchased ERC in 2013.
Antares Capital LP and Golub Capital Markets LLC are providing the financing and Ropes & Gray is acting as legal counsel to CCMP. Moelis & Company is serving as the exclusive financial advisor and Perkins Coie is acting as legal counsel to ERC and Lee Equity Partners.