Newswires
Caron Texas Assets Acquired by Private Equity-Backed Sunspire  E-mail
Addiction Treatment Industry Newswire

08/03/2015 -ATIN - Caron and private equity-backed Sunspire Health have reached a deal whereby Sunspire will acquire Caron's treatment operations in Texas, a transaction that appears to be a good fit for both parties. Sunspire is a rapidly growing relatively new addictions and behavioral health company that started with a center in South Florida just a few years ago and now, according to a joint press release, has facilities in four states. Caron, of course, is the world famous non-profit whose main campus is located in Pennsylvania and is one of main founding treatment centers in the U.S.

In an interview with Treatment Magazine, Doug Tieman, Caron's long-time CEO who has grown Caron tremendously over the past decade by a factor of about five into a $100M or so annual revenues treatment operation, said that the sale of Caron Texas fit into the non-profit's long term strategic plan. While he would not reveal the price Caron got for its 40-bed center located near Dallas, he said that compared with Caron's other centers, like for example its Renaissance or Ocean Drive facilities in South Florida, Caron Texas had been a rather "marginal" contributor and that selling it helped raise money for a major new multi-million dollar medical facility planned for Caron's Pennsylvania campus. A longer term focus is for expansion of the medical facility into South Florida as well. Caron earlier this year sold its Hanley Center operation to Origins Recovery Centers of Texas as part of that long-term plan, and plans on breaking ground next year on the big home campus medical facility, which will have a major focus on the rapidly expanding older adult marketplace.

Looking for Opportunity in Texas Market

According to Sunspire CEO A.J. Schreiber, Sunspire had been looking for opportunities in the Texas addictions marketplace and was highly impressed by Caron's high quality staff and facility, which he says will now accept insurance, unlike Caron which is exclusively private pay. Sunspire was acquired in early June by the private equity house Kohlberg, Schreiber said. Needless to say, the acquisition by Kohlberg is a highly important development for Sunspire, which already had aggressive expansion plans, plans that will now be backed by one of the most prestigious private equity houses in the world. Despite this, Schreiber told Treatment Magazine the aim at Sunspire is to focus on expansion while maintaining quality, saying neither Kohlberg nor himself had any particular desire to be the biggest, but rather the best. Sunspire's founding asset, before the company was rebranded as Sunspire as it acquired other centers and has grown, is Recovery Road of South Florida, which Schreiber says he started up in 2011.

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