US-based Polaris Hospital and its wholly-owned subsidiary TrustPoint Hospital of Murfreesboro, based in Tennessee had a change of its ownership from HCP & Company (HCP) to Acadia Healthcare Company for an undisclosed amount.
HCP had supported and partnered with the all material Polaris Hospital entities who in return had generated four times on the investment done by HCP, representing internal rate of return (IRR) of more than 50%.
Nevada-based Polaris hospital primarily offers inpatient and outpatient behavioral health treatment, acute medical treatment and rehabilitation programmes for adults and seniors owned while operating specialty hospitals.
In 2011, HCP, with their behavioral health operational expertise of Mark Russell, teamed with Kevin Lee, founder of Polaris Hospital to invest on large share in existing hospital operations in Lubbock, Texas and partially invest on the de novo development, construction and operationalisation of TrustPoint Hospital of Murfreesboro.
The HPE II’s first thesis-driven investment done on Polaris is seen as HCP’s attempt to fund and offer a strategic oversight to supplement the mental health services and cater to the increasing demand of patients with HCP and Mark Russell pledges their service to the domain of behavioral services with existing and future portfolio company partners.
Cain Brothers & Company has exclusively advised Polaris Hospital Holdings and HCP & Company during the transaction, led by Todd Rudsenske, and Bass Berry & Sims, led by Ryan Thomas.
Led by Brent Hill, Acadia Healthcare Company was advised by Waller Lansden Dortch & Davis.