August 9, 2016
Celerity Partners Exits Pinnacle Treatment Centers
Celerity Partners and other shareholders sold Pinnacle Treatment Centers Holdings, Inc. (“Pinnacle” of the “Company”) to Linden Capital Partners, a healthcare focused private equity firm. Pinnacle has grown to become one of the largest providers of in-network inpatient and outpatient substance abuse treatment services in the country.
Celerity founded the project in partnership with the Company’s former CEO by acquiring four Pennsylvania based outpatient opiate treatment programs. Over Celerity’s investment hold period, the Company executed eight acquisitions and opened another 18 locations via greenfielding. The growth strategy led the transformation of Pinnacle from being a single state, single service provider with substantial Medicaid revenue concentration to a business providing a full continuum of treatment care across five states with a balanced payor mix. EBITDA grew by approximately 10x through the hold period after building a significant corporate overhead.
Principals of Celerity are pleased to continue their support of Pinnacle through their co-investment with Linden. We believe the current management team, led by Joe Pritchard, and backlog of internal growth initiatives will drive earnings growth for years to come.