BayMark Health Services, Largest Addiction Treatment Provider in North America, Reportedly On the Market
According to recent media reports, BayMark Health Services, a leading addiction treatment provider based in Lewisville, Texas, is currently up for sale. The company, which is considered the largest addiction treatment provider in North America, is being marketed by its private equity backer, Webster Equity Partners, with reported earnings totaling $75 million.
Despite multiple requests for comment, representatives from BayMark and Webster Equity Partners have remained silent on the matter. This latest attempt to sell the company comes after a previous unsuccessful sale attempt back in 2019, which was later moved to a continuation vehicle in 2021. Webster Equity Partners, in partnership with BPEA Private Equity, initially acquired BayMark in 2015, leading to significant growth through mergers and acquisitions.
In recent years, BayMark has scaled back its M&A activities, with industry insiders pointing to the company’s aggressive acquisition pace as a contributing factor to the overall slowdown in dealmaking within the addiction treatment space. With traditional private equity hold periods in mind, a trade of BayMark Health Services is long overdue.
Marshal Salomon was appointed as the new CEO of BayMark Health Services last year, succeeding long-time CEO David White. However, the company faced challenges earlier in the year when it disclosed a data breach that resulted in several lawsuits. BayMark is currently seeking to consolidate these lawsuits to the U.S. District Court for the Eastern District of Texas, potentially complicating the sales process.
Buyers in the behavioral health sector have become increasingly savvy and skeptical, leading to longer and more intense due diligence processes. This trend may impact the sale of BayMark Health Services as potential buyers evaluate the company’s financial and legal standing before making any decisions.
