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Banyon Buys Sunspire's Heartland Illinois Addiction Center PDF   E-mail

10/08/2018 -ATIN- Florida's Banyon Treatment Centers, one of the most aggressively expanding specialty addiction providers in the nation, has reportedly purchased Sunspire Health's Heartland center, a now defunct facility that Banyon may be planning  to resurrect.

A well placed source from Chicago, which is about 60 miles from the Heartland property, says Banyon is actively seeking to fill an executive director position for Heartland, but Banyon executives were not immediately available for comment.

Sunspire Health was sold by its founder, Ben Klein, a couple of years ago to prestigious private equity firm Kohlberg & Co. Klein has recently taken control of addiction treatment giant Elements Behavioral Health through a bankruptcy auction and plans to take the CEO slot when the deal is given final approval by a federal judge. After buying Sunspire, Kohlberg paid big bucks for the world famous Arizona center The Meadows, which was one of the first addiction treatment industry forays by a private equity investor fifteen years ago.

Since the Sunspire buy, Kohlberg has been trimming its assets shutting down a facility in the Northwest and now apparently offloading the Heartland property. A treatment center CEO in Chicago who was pitched as a possible buyer said Heartland was quite rundown and in need of significant investment.

Banyon has an outpatient center in Chicago, so Heartland will presumably allow Banyon to serve the nation's second largest metro market with a broader continuum of care.

Banyon Buys BHOPB

Earlier this year, Banyon made one of the biggest deals in the specialty addiction marketplace by buying struggling Behavioral Health of the Palm Beaches, BHOPB, which had about 200 beds but was imploding under CEO and co-founder Jack Coscia. BHOPB began bleeding staff, which were hired by centers like The Florida House, among others. At one time, under the astute management of treatment exec Alan Stevens, BHOPB was a thriving center whose properties were arguably the best in the huge South Florida hub and whose cutting edge clinical models were widely admired and emulated.

What reportedly brought BHOPB down was a botched takeover deal, allegedly epicly mishandled. About three years ago a Colorado private equity firm approached BHOPB and, sources say, offered about $130M for the provider, which if the deal went through would have been one of the largest transactions in addiction treatment history. Instead, sources say, BHOPB held out for more money, a source says just $3M. The Colorado private equity buyer, allegedly frustrated, walked away from the deal.

Banyon has also bought the Clearview center in Pennsylvania, and has opened a detox and residential property in Boca Raton. The only two BHOPB properties currently in operation under Banyon are a big center in western Palm Beach county, a motel conversion adroitly pulled off by Coscia, and the Seaside Palm Beach property just accross from the beach in Palm Beach Shores, one of the most valuable addiction properties in the nation.

Jack Coscia and Banyon operations chief Eric Oakes did not immediately respond to requests for comments.

READ OUR Special Report on Banyon's unique BHOPB Seaside Palm Beach property

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