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Wellspring Capital Management Acquires Advoserv
November 24, 2015
NEW YORK, NY--Wellspring Capital Management LLC, a New York-based private equity firm, announced today that it has acquired AdvoServ, a nationally recognized behavioral healthcare provider specializing in clinical, educational and residential services for children and adults with severe intellectual and developmental disabilities and dual diagnoses. Financial terms of the transaction were not disclosed.
Founded in 1969, AdvoServ provides comprehensive treatment services that include special education, structured day programs, vocational training, supported employment, and community living programs, all designed to enhance the quality of life of each individual. A multi-disciplinary clinical team designs a comprehensive, customized program for each individual it serves. Currently, AdvoServ serves more than 700 individuals through its programs based in Delaware, Florida, New Jersey and Virginia. Its programs operate 24/7, 365 days a year and are recognized by regulators, agencies, and families as safe, effective, and life-enhancing. The company’s experience in caring for individuals with the most challenging needs is widely recognized, and its approach to treatment and instruction, based on applied behavior analysis, is scientifically proven.
Alexander E. Carles, a Managing Partner of Wellspring who directs the firm’s healthcare investing effort, said, “We are very pleased to support AdvoServ, a recognized clinical leader serving individuals with the most acute intellectual and developmental disabilities. AdvoServ has strong market positions in the three states – Delaware, Florida and New Jersey – where it has operated for many years and is in the early stages of pursuing an exceptional opportunity to serve the Virginia market. We look forward to working closely with Kelly McCrann and his management team to pursue a broad range of attractive growth initiatives for AdvoServ.”
Kelly McCrann, CEO of AdvoServ, said, “We are extremely excited to build upon AdvoServ’s historic accomplishments through our new partnership with Wellspring. Favorable industry dynamics present compelling opportunities to grow our business by caring for, and improving the lives of, more individuals in need. With the support of the Wellspring team, we intend to continue expanding and improving the important services we provide.”
Alvarez & Marsal Healthcare Transaction Advisory Group served as financial advisor and Paul, Weiss, Rifkind, Wharton & Garrison LLP served as legal counsel to Wellspring in connection with the transaction.
During its 46 year history, AdvoServ has established a strong reputation within the specialist behavioral healthcare sector as a leading operator of residential group homes and related education programs for the treatment of individuals with intellectual and developmental disabilities and severe behavioral challenges. AdvoServ is highly regarded for its state-of-the-art behavioral treatment techniques, which use advanced data analysis and highly individualized programs. For more information, please visit http://www.advoserv.com/.
About Wellspring Capital Management
Wellspring Capital Management, founded in 1995, is a leading middle-market private equity firm that manages more than $3 billion of private equity capital. The firm’s objective is to bring partnership, experience and value creation to each investment. By teaming up with strong management, Wellspring is able to unlock underlying value and pursue new growth opportunities through strategic initiatives, operating improvements and add-on acquisitions. The firm functions as a strategic rather than tactical partner, providing management teams with top-line support, M&A experience and financial expertise, and access to resources.