Industry News • October 24, 2016
DALLAS & NASHVILLE, Tenn.–(BUSINESS WIRE)–Pharos Capital Group, LLC (“Pharos”), a private equity firm based in Dallas and Nashville, has acquired Logan River Academy, an adolescent residential treatment center in Logan, Utah. Several members of the company’s original management team have rolled over a minority equity stake in conjunction with the transaction. Additional terms of the transaction were not disclosed.
“Pharos is building its portfolio of behavioral health companies and the acquisition of Logan River is a logical extension of that strategy”
Logan River helps male and female students ages 12-18 who have difficulties in the home, community and school. The Company works with a wide range of behavioral and emotional issues, including autism spectrum disorders, adoption issues, anxiety, oppositional behavior, bipolar disorder, PTSD, substance abuse, depression, ADHD, impulse control, anger management, self-esteem, family relationships and academic struggles. Logan River’s programs emphasize the importance of treating the whole child and family in a nurturing residential environment where therapy is provided by licensed clinicians and students attend a fully accredited school with certified teachers.
Larry Carter and Jeff Smith, both current owners of the Company, will continue as Executive Director and Chief Operating Officer, respectively, under the new ownership. In addition, Ed Irby, a longtime behavioral health and special education executive with whom Pharos has an existing relationship, will head a new holding company, The Family Treatment Network, that Pharos has set up to manage its investments in special schools, psychiatric residential treatment centers and community-based programs for children, adolescents and their families.
“Pharos is building its portfolio of behavioral health companies and the acquisition of Logan River is a logical extension of that strategy,” said Joseph Acevedo, Principal at Pharos. “Larry and Jeff have built a premier service for families seeking effective education and treatment for their loved ones dealing with adolescent issues. We have been impressed at how much they care for the students in this program – it is clear they want to see these teens achieve successful outcomes.”
Mr. Irby confirmed, saying, “The need for residential centers is growing; stigma has lessened, and this residential treatment model is becoming accessible to more people. These are trends we expect to continue, and we believe Logan River has not only positioned itself as a leading company in the sector, but is poised to grow through its use of innovative strategies, including programs targeted to teenagers on the autism spectrum and separate services catering specifically to female students.”
Mr. Carter commented, “We are excited to be working with the Pharos team. Pharos shares our vision of providing high quality treatment services based on respect for the individual in an appropriate setting. They will be invaluable partners as we aim to broaden our reach to accommodate more students and families.”
This marks the eighth portfolio investment from Pharos Fund III, following Pharos’ acquisitions of Seaside Healthcare, Inc., a behavioral health services provider; Employee Benefit Solutions, a provider of healthcare cost containment and wellness programs; Motion PT, a leading provider of physical therapy and occupational therapy in the Northeast; Dermatology and MedSpa, Inc., a provider of medical/surgical and cosmetic dermatology services; Beacon Specialized Living Services, Inc., a provider of residential healthcare services to individuals with intellectual and developmental disabilities; FasPsych, a provider of telepsychiatry services; and TechLab, a developer of diagnostic tests for gastrointestinal disease.
Bass, Berry & Sims LLP served as legal counsel to Pharos and BDO, LLP was Pharos’s financial consultant. Parr, Brown, Gee, & Loveless, LLP provided legal counsel to the Company.
This article originally appeared in an article on BusinessWire.