Waltham, MA (June 15, 2018) – Webster Capital is pleased to announce the simultaneous recapitalization of Center For Discovery and acquisition of Cliffside Malibu. The combination of these two companies will create Discovery Behavioral Health (“DBH” or the “Company”), a diversified behavioral health player providing the full array of treatment modalities for individuals suffering from eating disorders, mental health and substance abuse. DBH will have a national footprint of 42 residential treatment centers and 23 outpatient centers across 11 states.
In August 2011, Webster Capital acquired Center For Discovery, a behavioral health provider specializing in eating disorder treatment for adolescents and adults, in addition to mental health and addiction treatment for adolescents. Under Webster’s ownership, Center For Discovery has rapidly expanded its national footprint through both residential and outpatient facilities and is now one of the largest eating disorder treatment providers in the United States.
Started in 2005 as a boutique six-bed substance abuse treatment facility for men and women, Cliffside Malibu now operates multiple licensed residential treatment centers and outpatient centers in Southern California. Cliffside Malibu provides the full continuum of care that includes the support and tools for achieving lasting sobriety and is a nationally-recognized leader in evidence-based addiction treatment.
“We are excited to broaden our overall behavioral health platform with the merger of Center For Discovery and Cliffside Malibu. Demand for behavioral health services has reached an all-time high and DBH will continue to address the tremendous need for treatment while maintaining its reputation for clinical excellence.” said David Malm, Managing Partner at Webster Capital. “There is significant opportunity to leverage the increased scale of the Company to enhance its multi-prong treatment approach and penetrate new geographies.”
Cliffside Malibu CEO, John Peloquin, said, “We are excited to partner with Webster Capital and Center For Discovery to provide a broader array of behavioral health services to an underserved population. We share the same core values of individualized patient experience and highest clinical standards, which makes the combination of the two companies an idyllic scenario. DBH will have the resources and capabilities to provide the highest standard of evidence-based treatment.”
Cain Brothers, a division of KeyBanc Capital Markets, served as the buy-side financial advisor, and Goodwin Procter LLP acted as legal counsel to Center For Discovery and Webster Capital.
About Webster Capital
Founded in 2003, Webster Capital is a private equity firm that invests in the branded consumer and healthcare services industries and provides equity financing, expertise, and a broad contact network for management buyouts and growth capital. Webster is currently investing its third fund and has raised over $600 million of capital. For additional information on Webster Capital, please visit www.webstercapital.com.
About Center For Discovery
Center For Discovery has been providing residential and outpatient treatment for adults and teens for over 20 years. Each Center for Discovery location is dedicated solely to one of its specialized treatment programs and maintains a high staff to resident ratio, enabling the Company to provide the most effective and efficient treatment for eating disorders, mental health disorders and substance abuse issues. Treatment within a residential neighborhood or outpatient facilities allows clients to feel more comfortable in a familiar surrounding and provides greater transferability and internalization of the treatment experience to life after treatment. Center For Discovery places a high priority on providing an environment where its clients feel like and are treated like people, never patients. For additional information, please visit www.centerfordiscovery.com.
About Cliffside Malibu
Cliffside Malibu provides evidence-based treatment for those suffering from substance abuse and other co-occurring mental health disorders. The Company operates premier detoxification and residential centers, sober living facilities and outpatient substance abuse treatment facilities in Southern California. Since inception, Cliffside’s treatment methods have been based on The Stages of Change model which focuses on individualized, holistic therapies in conjunction with psychotherapy. The Cliffside Malibu acquisition by Discovery Behavioral Health excluded the following affiliates: TheFix.com, RehabReviews.com and Clean & Sober Media LLC. For additional information, please visit www.cliffsidemalibu.com.