2014

Strategic Behavioral Health, LLC Acquires Peak Behavioral Services Hospital from Universal Health Services, Inc.

MEMPHIS, Tenn., June 10, 2013 /PRNewswire/ -- Strategic Behavioral Health, LLC (SBH), a national behavioral healthcare provider of inpatient and outpatient services announced that effective May 20, 2013, it has acquired the assets of Peak Behavioral Services (Peak Behavioral) from Universal Health Services, Inc. (UHS).  The facility is located in Santa Teresa, New Mexico near El Paso, Texas.  The acquisition is being made in connection with the divestiture requirements resulting from the agreements between the Federal Trade Commission and Universal Health Services, Inc. following UHS's acquisition of Ascend Health Corporation.  The Federal Trade Commission approved the transaction.  SBH is a portfolio company of Dobbs Management Service, LLC, the family office of the John Hull Dobbs family of Memphis.

The Peak Behavioral facility is a licensed acute and residential psychiatric hospital with 119 total beds.  Peak Behavioral has been a leader serving the behavioral healthcare needs of Southeastern New Mexico and the Greater El Paso area for over 25 years.  Peak Behavioral provides acute behavioral healthcare services including [adult, chemical dependency, military and child and adolescent areas].  Additionally, the facility provides residential treatment services for children and adolescents. The acquisition of the assets of Peak Behavioral brings the total beds for SBH to 536 existing beds.  The additional construction of 164 new beds in two new facilities in Las Vegas, Nevada and College Station, Texas will bring the total to over 700  beds by late 2014.  The beds are located in North Carolina, Colorado, New Mexico, Texas and Nevada across 8 facilities.

Jim Shaheen, Founder and Chief Executive Officer of SBH, stated in a press release, "We are excited to be entering the Southeastern New Mexico and Greater El Paso markets through the acquisition of Peak Behavioral.  This is geographically complementary to our other Southwestern facilities in Colorado Springs and Las Vegas and our new facility being built in College Station, Texas. While SBH has principally focused on organic growth of new facilities, we have the desire as well as ready access to capital to continue to selectively pursue acquisitions that have high quality clinical programs in sound markets and present opportunities for additional growth."

Edward Dobbs, President of Dobbs Management Service, LLC, commented, "Peak Behavioral Services is highly complementary to our existing assets and provides a great base for additional growth.  We look forward to ongoing opportunities to provide additional capital to fund SBH's ongoing growth through greenfield facilities and highly selective strategic acquisitions.  It remains our long-term goal to have SBH become one of the leading private providers of behavioral healthcare services in the nation."

SBH and DMS worked with Fifth Third Bancorp, First Tennessee Bank, Pinnacle Financial and Synovus Bank to complete the financing of this acquisition in addition to its existing construction financing.  The combined corporate facility provides $80 million in funding with the ability to expand for future projects. 

About Strategic Behavioral Health, LLC
Strategic Behavioral Health was founded with the intent of designing, building, and operating state-of-the art behavioral health facilities throughout the United States. The company is based out of Memphis, Tennessee and operates facilities in Colorado, North Carolina, Nevada and New Mexico.  Facilities in Nevada and Texas are currently under construction.  Strategic Behavioral Health is dedicated to providing the highest quality behavioral health services in the industry through clinical excellence.  Please visit www.strategicbh.com.

About Dobbs Management Service, LLC (DMS)
Through Dobbs Management Service, LLC, the John Hull Dobbs family invests with a long-term perspective in businesses with strong management and growth opportunities.  The Dobbs family has a nearly 100 year history of successful long-term investing in growing businesses with good market positions, growth opportunities and exceptional management teams.  DMS's investment strategy is flexible but generally focuses on business-to-business services companies as well as healthcare services and distribution. 

The family currently owns several companies, in addition to SBH, including Premier Distributing, a New Mexico-based beverage distributor; DYK Automotive, LLC, a leading national automotive aftermarket oil, chemicals and parts distributor; Frenkel & Company, LLC, an international commercial insurance and healthcare benefits broker based in New York, NY; JHD Dental, LLC, a children's dental clinic operator; and, Potter Electric Signal, LLC, a market leading fire and security controls manufacturer. 

Historically, the Dobbs family has owned Dobbs Automotive, a national automobile dealership group; Unison Health Plans, one of the largest private multi-state Medicare and Medicaid HMOs; and Dobbs International, an airline catering and restaurant company.  For additional information about DMS and the portfolio companies of the John Hull Dobbs family, please refer to the firm's website at www.dobbsmanagement.com.

About Fifth Third Bancorp

Fifth Third Bank Healthcare arranged and led a Bank syndicate to provide financing for the acquisition.  Fifth Third Bancorp is a diversified financial services company headquartered in Cincinnati, Ohio with over $115 billion in assets.  Fifth Third's Healthcare Group is headquartered in Nashville, TN and maintains over $7.0 billion in commitments to companies across a broad range of healthcare sectors; including acute care and psychiatric hospitals, outpatient services, long term care, medical services and devices, managed care, information technology, and other related healthcare services.  Fifth Third Bank focuses on creative financing solutions for acquisitions, expansion and growth, recapitalizations, refinancing and working capital facilities, and bridge loans to capital markets transactions.  In addition, the Bank has a heavy investment in resources and technology to create healthcare-specific solutions for its clients. (e.g., EOB capture, electronic remittance advice integration, and denial management).

First Tennessee National Bank, Pinnacle National Bank and Synovus Bank also participated in the Fifth Third led Credit Facility.

SOURCE Strategic Behavioral Health, LLC



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http://www.strategicbh.com

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