ARC Health continues its blistering dealmaking spree with the acquisitions of Los Angeles-based Silver Lake Psychology and Denver Wellness Associates.
The two deals mark the fifth and sixth acquisitions of the private-equity-backed mental health platform company in 2023 alone. Silver Lake Psychology is the largest firm acquired so far and indicates a focus on larger practices in the future, ARC Health CEO Vince Morra told Behavioral Health Business.
“We’re looking to do larger deals as we get more and more sophisticated and roll in additional practices,” Morra said, adding that it has deals for firms larger than Silver Lake in its pipeline. “We’re trying to expand our scope with [transcranial magnetic stimulation] … and we want to expand both in med management as awas as therapy.”
Terms of the deals were not disclosed.
Silver Lake Psychology adds 15 offices in California, Colorado, Tennessee, Virginia and Washington D.C., while the Denver Wellness Associates deal adds two locations in Denver.
“We’re proud to partner with an organization that supports provider-led groups that put patients and providers first,” Brandy Engler, the founder of Silver Lake Psychology, said in a news release. “We’re confident that the team at ARC can help us expand and take Silver Lake Psychology to the next level.”
Engler founded Silver Lake Psychology in 2016. It now conducts over 100,000 patient visits annually and employs more than 400 providers. Dr. Jeanne Theobald founded Denver Wellness Associates in 2016. It employs about 20 providers.
Last week, Beachwood, Ohio-based ARC Health announced it acquired Positive Change Counseling Center, marking its first practice in California.
ARC Health is backed by Chicago-based private equity firm The Thurston Group. The firm acquired Advanced Recovery Concepts and rebranded it to ARC Health. That deal helped establish and use the firm’s blueprint of ARC Health as it seeks to consolidate the outpatient mental health space and expand access to care.
Chicago-based Physician Growth Partners advised Silver Lake Psychology. Clew Partners originated the Denver Wellness Associates transaction and served as the buy-side advisor to ARC Health.
Looking forward, ARC Health has letters of intent for 80% of the company’s acquisition goal for 2023 and may hit 150% by year’s end, Morra said. ARC Health’s goal for growth according to previous reporting was 14 new practices that oversee 20 to 25 new locations.