CHICAGO, May 20, 2016 /PRNewswire/ -- HCP & Company (HCP) executed the sale of Polaris Hospital Holdings, LLC, based in Nevada, and its wholly-owned subsidiary TrustPoint Hospital of Murfreesboro, based in Tennessee, to Acadia Healthcare Company, Inc. (NASDAQ: ACHC) effective May 1. This exit culminates HCP's support and partnership with all material Polaris Hospital entities, which provided HPE II, LP limited partners a deal return of over 4x of invested capital and representing an IRR of over 50%.
Polaris' entities owned and operated specialty hospitals providing inpatient and outpatient behavioral health treatment, acute medical treatment and rehabilitation programs for adults and seniors. HCP, in concert with the behavioral health operational expertise of Mark R. Russell, partnered with Kevin Lee, founder of Polaris Hospital, in October 2011 to buy a majority interest in existing hospital operations in Lubbock, TX and to partially fund the de novo development, construction and operationalization of TrustPoint Hospital of Murfreesboro.
Polaris was HPE II's first thesis-driven investment in the behavioral health industry as HCP identified an opportunity to provide investment capital and strategic oversight to help bridge the under supply of mental health services to the increasing demand of patients, families and their communities. HCP and Mark R. Russell remain committed to the successful growth of these critically needed behavioral services with existing and future portfolio company partners.
Terms of the transaction were not disclosed. Polaris Hospital Holdings and HCP & Company were exclusively advised by Cain Brothers & Company LLC, led by Todd Rudsenske, and Bass Berry & Sims, PLC, led by Ryan Thomas. Acadia Healthcare Company, Inc. was advised by Waller Lansden Dortch & Davis, LLP, led by Brent Hill.
About HCP & Company
HCP & Company is a private equity firm specializing in control and non-control growth equity and buyout investments in companies with superior outcomes and attractive growth prospects. HCP seeks to generate sustainable, long-term value for its partners by accelerating growth in companies identified through its sector-specific (consumer products, education and healthcare services) investment strategies. The firm has raised and managed approximately $215 million in private capital. More information can be found at www.hcpcompany.com.
SOURCE HCP & Company