Industry News • August 5, 2019
ATLANTA and NEW YORK, Aug. 5, 2019 /PRNewswire/ — Formation Capital (“Formation”) and Safanad Limited (“Safanad”) announce the sale of the parent company of RHA Health Services, LLC (“RHA”), the comprehensive provider of services to individuals with intellectual and developmental disabilities (“I/DD”), behavioral health needs and substance use challenges to an affiliate of Blue Wolf Capital.
With operations in Georgia, Florida, North Carolina, and Tennessee, RHA serves 25,000 people each year. RHA serves these individuals across 440+ locations in four states in the Southeastern USA. Founded in 1989, RHA began as a small collection of homes in North Carolina offering support to people with intellectual and developmental disabilities. Over the past 30 years, RHA has become one of the leading I/DD providers in North Carolina with a prominent presence in Georgia, Tennessee and Florida.
RHA’s homes serve to coordinate health and provide habilitative services and training to enable both adults and children with developmental disabilities to function at the highest level possible. RHA’s behavioral health segment operates a variety of clinics and outpatient facilities and provides education services that promote healthy choices and realistic goals, improving a person’s network and encouraging independence.
In 2015, Formation and Safanad acquired RHA to help it grow operations within its current communities and to expand its reach and services in the Southeastern United States. Since the acquisition, RHA has doubled its EBITDA and added additional service lines to better serve its patient population. The exit generates a strong return to Formation’s and Safanad’s investors.
Brian Beckwith, CEO of Formation, shared, “As with all of our healthcare investments, a primary focus is the quality of the care delivered by the management team and RHA exceeded expectations in this area. A resident focused approach will remain a focal point in new investments, which often leads to excellent returns. We look forward to following RHA’s continued success.”
Kamal Bahamdan, CEO and Founder of Safanad, commented, “We invested in RHA with a conviction that its market leading platform would provide exceptional care thus generating strong returns in a growing sector. Healthcare has always been an important sector to Safanad. RHA has been another successful healthcare investment, and we look forward to seeing the company to go on to even greater success under new ownership.”
This article originally appeared in an article in PR Newswire.