BRENTWOOD, Tenn.--(BUSINESS WIRE)--AAC Holdings, Inc. (NYSE: AAC), through its applicable subsidiary, has completed the previously announced acquisition of Clinical Services of Rhode Island, Inc. (“CSRI”), a provider of intensive outpatient substance abuse treatment services, for $665,057 in cash and 42,460 restricted shares of AAC Holdings’ common stock.
CSRI operates three outpatient treatment facilities located in Greenville, Portsmouth and South Kingstown, R.I. CSRI generated revenue of approximately $1.2 million and Adjusted EBITDA of approximately $0.2 million for the year ended December 31, 2014.
“We are pleased to bring CSRI into the fold and increase our outpatient network to five stand alone centers,” says Michael Cartwright, Chairman and Chief Executive Officer of AAC Holdings. “A significant number of our residential clients come from the New England area. With CSRI, we are now able to better serve and support these clients by providing a full continuum of care that includes local outpatient services. We are excited to expand our footprint into New England and look forward to strengthening our presence in the region in the future.”
In connection with the closing, the Company has elevated Reinhard Straub to serve as Clinical and Business Development Liaison for American Addiction Centers, Inc. and has named Peter Letendre CEO and Clinical Director - Rhode Island Operations.
About American Addiction Centers
American Addiction Centers is a leading provider of inpatient substance abuse treatment services. We treat adults as well as adolescents who are struggling with drug addiction, alcohol addiction, and co-occurring mental/behavioral health issues. We operate 12 substance abuse treatment facilities and one mental health facility specializing in binge eating disorders. Located throughout the United States, these facilities are focused on delivering effective clinical care and treatment solutions. For more information, please find us at AmericanAddictionCenters.org or follow us on Twitter @AAC_Tweet.
Forward Looking Statements
This release contains forward looking statements within the meaning of the federal securities laws. These forward looking statements are made only as of the date of this release. In some cases, you can identify forward-looking statements by terms such as “anticipates,” “believes,” “could,” “estimates,” “expects,” “may,” “potential,” “predicts,” “projects,” “should,” “will,” “would,” and similar expressions intended to identify forward-looking statements, although not all forward-looking statements contain these words. Forward-looking statements may include information concerning AAC Holdings’ possible or assumed future results of operations, including descriptions of AAC Holdings’ revenues, profitability, outlook and overall business strategy. These statements involve known and unknown risks, uncertainties and other factors that may cause our actual results and performance to be materially different from the information contained in the forward looking statements. These risks, uncertainties and other factors include, without limitation: (i) our inability to operate our facilities; (ii) our inability to integrate newly acquired facilities; (iii) our reliance on our sales and marketing program to continuously attract and enroll clients; (iv) a reduction in reimbursement rates by certain third-party payors; (v) our failure to successfully achieve growth through acquisitions and de novo expansions; and (vi) general economic conditions, as well as other risks discussed in the “Risk Factors” section of the Company’s Annual Report on Form 10-K and in the Company’s other filings with the Securities and Exchange Commission. As a result of these factors, we cannot assure you that the forward looking statements in this release will prove to be accurate. Investors should not place undue reliance upon forward looking statements.