Civitas Solutions Announces Acquisition of Mentis Neuro Rehabilitation, Leading Provider of Specialty-Rehabilitation Services...
October 25 2017 - 5:20PM
Business Wire
Civitas Solutions, Inc. (“Civitas”) (NYSE: CIVI) today announced
that it successfully completed the acquisition of Mentis Neuro
Rehabilitation, LLC and its direct and indirect wholly owned
subsidiaries (collectively, “Mentis”). Mentis is a leading provider
of specialty rehabilitation services (SRS) to individuals
recovering from acquired brain injuries in the state of Texas and
has a growing presence in the state of Ohio.
Founded in 2009, Mentis provides a full continuum of long-term
residential, inpatient transitional and outpatient day services,
including physical, vocational and speech therapies, cognitive
rehabilitation, neuro psychology, 24-hour nursing and supportive
living services. With revenues of approximately $36 million for the
12-month period ending August 31, 2017 and a strong organic growth
profile, Mentis has a diverse group of referral sources drawn to
Mentis’ clinical expertise, ability to serve individuals with
complex challenges, and proven clinical outcomes.
Approximately 77% of Mentis’ revenue is generated from
commercial payors, with about 12% derived from state and local
government agencies and the balance (~11%) from Workers’
Compensation. Mentis operates 6 facilities with a total of 121
beds, 111 of which are in the Texas markets of Austin, El Paso,
Houston and San Antonio. Several expansion projects are underway,
including new day programs in the Austin, TX and Cincinnati and
Cleveland, OH markets. The Texas market in particular is attractive
for SRS services as state law requires that insurance carriers
provide coverage for cognitive rehabilitation.
“Last month, we closed out our fiscal 2017 with our largest
acquisition since 2003,” said Bruce Nardella, president and CEO of
Civitas Solutions. “I am pleased that we have started fiscal 2018
strong with the completion of an even larger deal.
“More important than its size, Mentis is a high-quality
provider, with clinical expertise and superior outcomes that make
it an ideal fit with our NeuroRestorative SRS operations in Texas
and Ohio,” said Nardella. “Like NeuroRestorative, Mentis has
demonstrated that its clinical model of care helps individuals
served achieve reductions in disability levels and a higher quality
of life. I am thrilled to welcome the Mentis team and the
individuals they support to Civitas.”
In connection with the acquisition, a wholly-owned subsidiary of
Civitas entered into Amendment No. 6 to its Credit Agreement.
Amendment No. 6 provided for an additional $75 million term loan.
The net proceeds of the additional term loan were used by Civitas
to pay the purchase price for the acquisition of Mentis and to pay
related fees and expenses, with any excess proceeds to be used for
general corporate purposes. Taking the incurrence of this
additional term loan into account, the Company’s net leverage as of
June 30, 2017, pro forma for acquisitions completed, including
Habilitative Services, LLC and Mentis, through the date hereof, was
3.75x.
Forward-Looking Statements
This press release contains statements about future events,
financial results, and expectations that constitute forward-looking
statements, including statements about the expected benefits of the
transaction, expected financial results of completed acquisitions,
expansion projects and expected growth. Forward-looking statements
are based on our beliefs, assumptions and expectations, taking into
account the information currently available to us. These statements
are not statements of historical fact. Forward-looking statements
involve risks and uncertainties that may cause our actual results
to differ materially from our expectations, and you should not
place undue reliance on such statements. Factors that could
contribute to these differences include, but are not limited to,
unanticipated transaction costs and our inability to successfully
integrate the Mentis business with our business, and the other
factors described in “Risk Factors” in Civitas Solutions, Inc.’s
Form 10-K. We qualify any forward-looking statements entirely by
these cautionary factors. We assume no obligation to update or
revise any forward-looking statements for any reason, or to update
the reasons actual results could differ materially from those
anticipated in these forward-looking statements, even if new
information becomes available in the future.
About Civitas
Civitas Solutions, Inc. is the leading national provider of
home- and community-based health and human services to must-serve
individuals with intellectual, developmental, physical or
behavioral disabilities and other special needs. Since our founding
in 1980, we have evolved from a single residential program to a
diversified national network offering an array of quality services
in 36 states.
View source
version on businesswire.com: http://www.businesswire.com/news/home/20171025006426/en/
Civitas Solutions, Inc.Dwight Robson, 617-790-4800Chief Public
Strategy and Marketing
Officerdwight.robson@civitas-solutions.com
Civitas Resources (NYSE:CIVI)
Historical Stock Chart
From Mar 2024 to Apr 2024
Civitas Resources (NYSE:CIVI)
Historical Stock Chart
From Apr 2023 to Apr 2024