Ethema Health Corporation (OTCQB: GRST) has announced plans to acquire Addiction Recovery Care LLC, a company that has been under FBI scrutiny for healthcare fraud in recent years. The acquisition is expected to bring in combined revenue of over $100 million in 2026 alone. The deal will be funded with 25% cash, 25% in a vendor note, and 50% in equity-linked funding, with additional terms remaining undisclosed.
Although Addiction Recovery Care has not faced criminal charges, the FBI’s investigation remains open. Ethema CEO Shawn Leon stated that the acquisition of all assets will not be affected by previous operations. Addiction Recovery Care will become a subsidiary of Ethema Health, operating under the name “NewcoARIA” or “ARIA.”
Tim Robinson, CEO of Addiction Recovery Care, expressed optimism about the acquisition, stating that the move will help the company move past a challenging year. The formation of ARIA will likely lead to an initial public offering to simplify the acquisition and debt structure for Ethema.
The acquisition includes all assets of Addiction Recovery Care, such as inpatient and outpatient facilities, a psychiatric hospital, pharmacy, lab, and rural health clinic. These facilities have a combined capacity of nearly 900 patients. Ethema plans to remove any components of Addiction Recovery Care’s model, partnerships, or staffing that do not align with their own vision.
Future real estate transactions may generate new equity for Ethema, as the company aims to create a statewide network of treatment facilities under the ARIA brand in Kentucky. Talks about the acquisition have been ongoing since January 2025, with the completion of the deal expected to further expand Ethema’s reach in the behavioral health and SUD services sector.
Earlier this year, Ethema acquired Kentucky-based SUD provider Edgewater Recovery Center, increasing their bed capacity to 600 and expanding their regional presence. With the addition of Addiction Recovery Care and potential future acquisitions, Ethema aims to grow to approximately 3,000 beds in the near future. The company is actively seeking out other providers that align with their goals to expand their services and reach more patients in need of behavioral health and substance use disorder treatment.
