New Brentwood behavioral venture completes first two acquisitions

Brentwood-based Odyssey Behavioral Healthcare has completed its first two acquisitions, both in Florida.

Odyssey is a partnership between Rhode Island-private equity firm Nautic Partners and Scott Kardenetz, a behavioral health care veteran who previously helped lead Haven Behavioral Healthcare, Psychiatric Solutions and Ardent Health Services, among other.

The two acquired facilities, Pasadena Villa Psychiatric Residential Treatment Centers and Lifeskills South Florida, both provide adult residential and outpatient treatment services. Terms of the deals were not disclosed. Franklin-based Brentwood Capital Advisors represented Pasadena in its transaction.

“I’m thrilled to launch Odyssey Behavioral Healthcare with backing from Nautic Partners,” Kardenetz said in a release. “With their impressive facilitates, top clinical staff and exceptional reputations within the industry, I believe that Pasadena Villa and Lifeskills of South Florida give Odyssey an impressive platform from which to launch our company.”

Odyssey and Nautic plan to invest up to $50 million to support the company’s growth strategy through de novo development and acquisition, according to a release.

“We believe the delivery system for behavioral health care is inadequate and in need of investment and leadership,” Scott Hilinski, Nautic Partners managing director, said a statement. “With the addition of Pasadena Villa and Lifeskills, two prominent treatment centers, Odyssey has established an outstanding foundation from which to expand high quality access to those in need of psychiatric and addiction treatment care.”

A number of local behavioral health care companies have been at the forefront of consolidating the sector in recent years. In addition to Acadia Healthcare — which now has a market capitalization of more than $5.6 billion — other players include addiction treatment specialists AAC Holdings, which went public last year, and JourneyPure, which is being backed by an investor group led by Clayton Associates’ Rolling Hills Ventures group.

 


Pasadena Villa Completes Sale to Odyssey Behavioral Healthcare

Brentwood Capital Advisors is pleased to announce that it served as the exclusive financial advisor to Pasadena Villa Psychiatric Residential Treatment Centers (“Pasadena” or the “Company”) in its sale to Odyssey Behavioral Healthcare (“Odyssey”), a platform company formed by Nautic Partners (“Nautic”) and Scott Kardenetz.

Founded in 2001 and headquartered in Orlando, FL, Pasadena Villa is a leading provider of psychiatric treatment services to patients suffering from thought and mood disorders. The Company treats patients in two intensive residential treatment facilities, Pasadena Villa (Orlando, FL) and Smokey Mountain Lodge (Sevierville, TN). Pasadena provides a full continuum of care including intensive residential treatment, supportive residential treatment, day treatment and case management.

“We founded and built Pasadena Villa to focus on mental health and primary psychiatric disorders,” said David Nissen, Managing Director and Co-Founder of Pasadena. “Our mission has been to provide the highest quality individualized psychiatric and psychotherapeutic care for adults who suffer with severe and persistent mental illness, while maximizing social functioning in the real world. Brentwood Capital Advisors, our investment banker in this transaction, played a critically important role in structuring a transaction that met the goals of all shareholders, which included maximizing value and finding a partner who shares our vision for excellence in psychiatric care. BCA identified the best buyer and helped us prepare for and navigate through a rigorous diligence process and complex transaction and purchase contract negotiations.”

“We were delighted to represent Pasadena Villa in this sale to Odyssey,” stated L.A. Galyon of Brentwood Capital Advisors LLC. “Pasadena has a tremendous reputation in the industry and will only continue to flourish under Odyssey’s leadership. This was an important transaction in building upon BCA’s leadership position in behavioral health investment banking, which now includes eight transactions in this space.”

“With its impressive facilities, top clinical staff, and exceptional reputation within the industry, Pasadena Villa is a foundational element in our platform that will enable Odyssey to build a leading company in psychiatric care and addiction treatment,” noted Scott Kardenetz, CEO of Odyssey Behavioral Healthcare based in Brentwood, TN. “We share management’s enthusiasm for Pasadena Villa and look forward to the continued growth of the Company,“ said Chris Corey, Managing Director of Nautic.

About Pasadena Villa
Founded in 2001 by Michael Williams, George Kachmarik and David Nissen and headquartered in Orlando, FL, Pasadena Villa provides adult residential therapy, with an emphasis on social integration, for individuals suffering with severe and persistent mental illness. The Company has inpatient residential treatment facilities located in Orlando, FL and Sevierville, TN and provides a full continuum of care including residential, transitional and support services. http://pasadenavilla.com/

About Brentwood Capital Advisors
Based in Franklin, Tennessee, Brentwood Capital Advisors (“BCA”) is one of the South’s leading boutique investment banks that provides mergers and acquisitions and capital raising advice to privately-held, middle market healthcare, technology and tech-enabled and outsourced services companies. BCA has served as exclusive financial advisor in over 70 successfully closed transactions totaling approximately $4.4 billion in value in these sectors. Founded in 1999, the firm is partner-owned and has sixteen investment banking professionals. For more information, please go to www.brentwoodcapital.com.