Riverside Invests In Castlewood January 03, 2017
Firm Acquires Leading Eating Disorder Clinic
The Riverside Company has acquired Castlewood Treatment Centers (Castlewood), an eating disorder treatment provider with clinics in California, Missouri and Alabama.
Castlewood offers residential treatment, partial hospitalization, and intensive outpatient treatment for male and female patients aged 16 or older suffering from eating disorders and co-occurring mental health issues such as anxiety, trauma, chemical dependency, and depression.
“The clinicians at Castlewood literally save lives,” said Riverside Managing Partner Loren Schlachet. “Eating disorders have a significant mortality rate, and cause numerous other health problems. We’re proud to partner with Castlewood to help more patients receive this vital treatment.”
“Castlewood’s clinical directors are thought leaders in the space, and the company is a premier provider of this important service,” said Riverside Partner Joe Lee. “The company’s focus on data and outcomes has demonstrated efficacy which is further illustrated by its extremely high patient satisfaction levels.”
Eating disorders are significantly undertreated, which partly explains Castlewood’s steady growth as a provider of choice with a track record of success and innovative thinking into the challenges eating disorders pose.
Riverside sees many avenues for growth for Castlewood.
“We will work with Castlewood to improve awareness of its services through sales and marketing efforts, increasing capacity at existing facilities, and adding clinics both through acquisition and de novo efforts,” said Riverside Vice President John McKernan.
Castlewood CEO Nancy Albus is excited about partnering with Riverside.
“We look forward to our partnership with Riverside given our mutual interests, experience and desire to bring quality clinical care, awareness and prevention to underserved geographical regions,” said Albus.
Working with Schlachet, Lee and McKernan on the deal for Riverside were Associate David Bao, Senior Operating Partner Jeff Goodman and Finance Director Mark Pigott. Origination Principal Jim Butterfield sourced the deal for Riverside.
Jones Day served as legal counsel and McDermott Will & Emery served as regulatory counsel. Deloitte served as financial advisor and West Monroe was the technology advisor for Riverside. Deerpath Capital provided financing for this transaction.
The Riverside Company
The Riverside Company is a global private equity firm focused on making control and non-control investments in growing businesses valued at up to $400 million. Since its founding in 1988, Riverside has invested in more than 450 transactions. The firm’s international portfolio includes more than 85 companies.