BRENTWOOD, Tenn.--(BUSINESS WIRE)--AAC Holdings, Inc. (NYSE: AAC), through one of its subsidiaries, completed the previously announced acquisition of Solutions Recovery, Inc., its affiliates and associated real estate assets for an aggregate $6.75 million in cash and $6.25 million of restricted shares of AAC Holdings’ common stock. The cash portion of the purchase price was funded from borrowings on the Company’s Deerfield subordinated debt facility. The acquisitions provide the following:
- 100 Sober Living Beds (owned)
- 80 Licensed In-Network Detox, Residential and Halfway House Beds (leased)
- 24 Sober Living Beds (leased)
- 2 Licensed, In-Network Outpatient Centers (leased)
“Las Vegas is one of our highest demand markets, and we are now better able to address the needs in this market with both out-of-network and in-network inpatient and outpatient treatment facilities,” said Michael Cartwright, Chairman and Chief Executive Officer of AAC Holdings. “Similar to what we are pursuing with the recent acquisition of sober living capacity in Arlington, Texas, we expect the additional sober living capacity to support continued growth and treatment options in both our Desert Hope outpatient facility and the Solutions Recovery outpatient centers.”
Solutions Recovery provides detoxification, residential, and intensive outpatient treatment as well as sober living services in the greater Las Vegas area. Dave Marlon, the facility CEO, is joining AAC along with the Solutions Recovery staff.
Solutions Recovery generated revenue of approximately $6.1 million for the year ended December 31, 2015. While Adjusted EBITDA is currently minimal, the Company expects to generate approximately $2 million of Adjusted EBITDA in the first twelve months of ownership.
About American Addiction Centers
American Addiction Centers
is a leading provider of inpatient substance abuse treatment services.
AAC treats clients who are struggling with drug addiction, alcohol
addiction, and co-occurring mental/behavioral health issues. AAC
currently operate 30 substance abuse treatment facilities. 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, Inc.’s (collectively with its subsidiaries, “Holdings” or the
“Company”) possible or assumed future results of operations, including
descriptions of 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 reliance on our sales and marketing program to
continuously attract and enroll clients; (iii) a reduction in
reimbursement rates by certain third-party payors for inpatient and
outpatient services and point of care and definitive lab testing; (iv)
our failure to successfully achieve growth through acquisitions and de
novo expansions; (v) uncertainties regarding the timing of the closing
of acquisitions; (vi) the possibility that a governmental entity may
prohibit, delay or refuse to grant approval for the consummation of
acquisitions; (vii) our failure to achieve anticipated financial results
from prior or pending acquisitions; (viii) a disruption in our ability
to perform diagnostic drug testing services; (ix) maintaining compliance
with applicable regulatory authorities, licensure and permits to operate
our facilities and lab; (x) a disruption in our business related to the
recent indictment of certain of our subsidiaries and current and former
employees, including a former senior executive; (xi) our inability to
agree on conversion and other terms for the balance of convertible debt;
(xii) our inability to meet our covenants in our loan documents; (xiii)
our inability to obtain senior lender consent to exceed the current $50
million limit in unsecured subordinated debt; (xiv) our inability to
integrate newly acquired facilities; (xv) a disruption to our business
and reputational and potential economic risks associated with the civil
securities claims brought by shareholders; and (xvi) 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 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.
