Linden LLC

Linden Announces Sale of Behavioral Centers of America

November 27, 2012 | For Immediate Release

Chicago, IL (November 27, 2012) – Linden Capital Partners (“Linden”) today announced the sale of Behavioral Centers of America (“BCA”) to a subsidiary of Acadia Healthcare Company, Inc. The transaction is anticipated to close in December 2012.

Based in Nashville, TN, BCA is a leading owner and operator of inpatient and outpatient psychiatric care facilities in Michigan, Ohio, and Texas. BCA addresses the mental health needs of its patients through a continuum of services, primarily focused on adolescent and geriatric populations.

Linden acted as lead investor, partnering with Health Enterprise Partners L.P., a New York-based growth equity firm, and Siguler Guff & Company, L.P., a multi-strategy private equity firm, to acquire BCA in July 2007. With the oversight of these owners, management executed a strategic value creation plan focused on the acquisition of new facilities, expansion of bed capacity at existing locations, and development of specialized treatment programs.

“As an experienced healthcare investor, Linden was an ideal partner to support our acquisition and organic growth initiatives,” said Buddy Turner, CEO of BCA. “Linden’s partnership philosophy, their understanding of the healthcare regulatory and reimbursement landscape, and their strategic guidance and resources helped propel BCA’s growth trajectory. With the assistance of the entire board, we successfully executed our value creation plan.”

“We have thoroughly enjoyed our partnership with Buddy Turner and the rest of the management team at BCA,” commented Tony Davis, a Managing Partner of Linden. “When making our original investment in the company, we were drawn to the significant unmet need for mental health services. Buddy and the team have done an outstanding job of building a patient-focused culture to deliver high quality psychiatric care. Their operational focus and discipline were instrumental in driving continuous annual improvements in profitability across the company’s facilities.” Eric Larson, a Managing Partner of Linden, stated, “It has been a pleasure to partner with Buddy and the management team of BCA. We congratulate them on their significant achievements and wish them continued success.”

Moelis & Company provided financial advisory services to BCA on the transaction and Kirkland & Ellis LLP provided legal advice.