Jan 14, 2022

Northborne Transaction Announcement | Center for Behavioral Health Acquired by Behavioral Health Group

MINNEAPOLIS, MN, January 14, 2022 – Northborne Partners is pleased to announce that it served as the exclusive financial advisor to Center for Behavioral Health (“CBH”) on its sale to Behavioral Health Group (“BHG”), a portfolio company of The Vistria Group. The transaction closed on December 30, 2021; financial terms were not disclosed.

Founded in Tempe, Arizona in 1983 by Mary Massman and Richard Musco, CBH is a critical provider of outpatient substance use disorder and behavioral health services with 20 treatment centers across eight states. CBH offers medication-assisted treatment (“MAT”) with all three federally approved medications for opiate addiction, counseling and supportive services, such as peer support and case management, medication management and pregnant patient services to over 7,000 patients daily. CBH’s dedicated team of over 280 employees joined BHG following the closing.

With the joining of the two organizations, BHG now operates 116 treatment facilities and two labs in 23 states, including five new states added as part of the CBH acquisition. BHG is one of the few scalable companies purposely built to address the substance abuse and opiate addiction public health crisis in the United States.

Mark Horvick, Managing Director at Northborne, commented that “CBH is a preeminent provider of MAT services. Brant Massman and Mary Massman, CBH’s owners, built a tremendous business that directly and positively impacts the lives of thousands of patients daily and improves the lives of thousands more. We are honored to have represented such an important business.”

"We look forward to continuing to provide superior patient services as well as providing all employees the opportunity to grow in a larger organization," said Brant Massman, co-owner of CBH. "CBH will expand its clinical model and service line offering to its existing patient population by adopting BHG's clinical model expansion plan, which is a build out of capabilities to provide care across the full spectrum of opioid use disorder, other outpatient substance use disorder treatment modalities and mental health."

“CBH has been a name synonymous with high quality patient care and staff education and opportunities,” said Mary Massman, co-owner of CBH. “We look forward to the future as a valuable part of BHG.”

"BHG's vision is to be the premier network of outpatient substance use disorder treatment facilities focusing on a wholistic approach to deliver superior patient outcomes with long term recovery," said Jay Higham, Chief Executive Officer of BHG. The acquisition of CBH and its tremendous team and operations fits perfectly within this mission. Outpatient medication-assisted treatment facilities such as CBH provide the gold standard of care at a fraction of the cost of residential treatment programs, which further emphasizes the value of BHG's clinical strategy. As Higham noted, "We're simply delivering on the most effective, lowest cost, full-service substance use recovery solution available today."

Ben Nordstrom, MD, PhD, Chief Medical Officer of BHG, noted "Our plan is to invest in acquisitions like CBH to rapidly scale points of access and to expand our service lines across our national footprint to address broader substance use disorders for which MAR has proven beneficial. Leveraging a more sophisticated and integrated care model that employs the full spectrum of evidence-based medication, behavioral therapy and mental health services brings opportunities to serve more of a population in crisis. Our medical mission is to empower our patients to realize their best level of functionality in the community." Most importantly, noted Dr. Nordstrom, BHG's clinical care model enables recovery care teams to meet each patient where they are as a unique individual, providing dynamic, flexible treatment and ongoing care as their goals, motivations, and needs change on their personal path toward recovery.

Winthrop & Weinstine, P.A. served as legal counsel to CBH.

About Northborne Partners

Northborne Partners is a preeminent middle market investment banking firm focused on providing M&A advisory services to companies in the food & consumer, healthcare and industrials sectors, among others. It focuses on advising private business owners in the sale of their companies and has decades of experience sitting across the table from the most seasoned strategic and private equity buyers in the world. Northborne Partners is headquartered in Minneapolis, MN. For more information, please visit www.northborne.com.

About CBH

Center for Behavioral Health is a leading provider of outpatient opioid treatment programs for individuals suffering from opioid use disorder. The Company provides medication-assisted treatment to more than 7,000 patients daily through its 20 clinics across eight states (Arizona, Idaho, Indiana, Iowa, Kentucky, Louisiana, Nevada and South Carolina). For more information, please visit www.centerforbehavioralhealth.com.

About BHG
Behavioral Health Group is the largest network of Joint Commission-accredited outpatient opioid treatment and recovery centers in the U.S., delivering comprehensive, personalized evidence-based medical and behavioral therapies for individuals with opioid use disorder. With 116 locations in 23 states, BHG has more than 1,900 employees who serve more than 42,000 patients. To learn more, visit www.bhgrecovery.com.

About Winthrop & Weinstine

Winthrop & Weinstine is a business law firm of more than 145 attorneys with a deliberate culture of enterprise and fresh thinking. The firm represents clients in virtually every area of law for business, including Corporate & Transactions, Business & Commercial Litigation, Banking & Finance, Employment, Health Law, Intellectual Property, Regulatory & Government Relations, Real Estate Development & Finance, and Trusts & Estates. The Corporate & Transactions Group cultivates deep experience across a range of industries, which provides the team with a foundation for crafting agile and creative multi-disciplinary solutions that connect with complex and unpredictable problems. The group focuses on representing privately held businesses and private funds that have national and international interests, and within the last several years has developed particular strength in representing behavioral health clinics in transactions across the country. Headquartered in Minneapolis, MN and with a national reach, Winthrop delivers service, smart perspectives and practical outcomes to put the law to work for you. Learn more at www.winthrop.com.

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