NewSpring Capital Exits Habit Holdings
March 04, 2014
RADNOR, PA - March 4, 2014 - NewSpring Capital is pleased to announce that Habit Holdings ("Habit"), a portfolio company of its dedicated growth and expansion stage healthcare fund, NewSpring Health Capital ("NSH"), has been acquired by CRC Health Group.
Habit has effectively capitalized on its strong position in the behavioral health and substance abuse market. In addition to its headquarters in Massachusetts, Habit has expanded into the states of Vermont, New Jersey and Pennsylvania and is currently one of the largest Medication Assisted Treatment programs in the country currently treating more than 9,000 patients with opiate addictions. As a result of this consistent expansion and operational execution, Habit has grown revenue by 72% while doubling EBITDA since the time of NSH's initial investment.
Brian Murphy, a General Partner of NewSpring Capital and board member of Habit commented, "We are extremely pleased to have been part of the success at Habit. The team has exceeded our expectations since we made the investment. Working with passionate and talented business leaders such as CEO, Tom Mageraci as well as the entire Habit management team was truly fulfilling. They did an excellent job executing on the company's vision and produced a very attractive outcome for our Limited Partners." Mr. Murphy added, "We are confident that Habit will be a good complement to CRC Health."
Tom Mageraci, CEO of Habit, said, "We have worked closely with our partners at NewSpring who have committed significant strategic and operational resources to help grow our business. Combining these two companies creates a unique opportunity to capitalize on the outpatient treatment services market. The entire Habit team is excited about the prospects of this combination."
Habit Holdings, founded in 1986, is one of the largest providers of outpatient multi-disciplinary treatment services to individuals addicted to opiate-based drugs. Habit Management's treatment model has been developed to provide patients with personalized care to help manage their addiction and allow them to return stability to their lives. The Company's treatment program utilizes methadone dosing tailored to fit each patient's individual medical needs, which is regulated by contracted physicians and dispensed by Habit Management's nursing staff.