Odyssey Behavioral Healthcare, a prominent behavioral health care provider based in Brentwood, Tennessee, underwent a quiet acquisition late last year by a new private equity firm, Behavioral Health Business has discovered. In November, New York City-based JLL Partners acquired Odyssey from The Carlyle Group, an international investment firm that had acquired Odyssey in December 2018. This acquisition marked a significant transition for Odyssey, as BHB had previously identified the company as a potential target for acquisition.
Despite numerous attempts to reach out to representatives from JLL Partners and The Carlyle Group for comment, no responses have been received. Additionally, Odyssey Behavioral Healthcare has declined to provide any statements regarding the acquisition.
The deal was facilitated by the investment bank Moelis & Co., which reportedly worked on behalf of Odyssey and The Carlyle Group. Mergermarket had previously reported that Odyssey had retained Moelis to advise on a potential sale, citing the company’s $55 million in adjusted earnings and the expectation of a substantial sale price.
Odyssey Behavioral Healthcare specializes in facility-based behavioral health care, offering treatment for substance use disorder, eating disorders, mental health disorders, and process disorders. With a total of 55 locations listed on its website, the company provides both residential and outpatient services. In recent months, Odyssey has continued to expand its reach by opening new facilities, such as the outpatient center under its STR Behavioral Health brand in Lancaster, Pennsylvania, which focuses on treating co-occurring addiction and mental health conditions.
However, not all expansions have been successful, as Odyssey made the decision to close the Shoreline Center for Eating Disorder Treatment in southern California towards the end of 2023. This move aligns with a trend in the industry of behavioral health companies scaling back on eating disorder services due to the challenges of operating in an increasingly tough economic climate.
The acquisition of Odyssey Behavioral Healthcare by JLL Partners reflects a growing interest among private equity firms in investing in behavioral health entities. A recent survey of PE executives revealed that many view behavioral health as a top consideration for health care investors. Despite the change in ownership, the leadership team at Odyssey remains unchanged, with CEO Richard Clark continuing to lead the organization. Clark has focused on expanding outpatient care offerings, recognizing the importance of providing a variety of care settings to meet payer demands.
As Odyssey embarks on this new chapter under the ownership of JLL Partners, it joins a portfolio of active health care companies, including the outpatient mental health platform Hightop Health. This acquisition signals a new era for Odyssey Behavioral Healthcare as it continues to grow and adapt to the evolving landscape of behavioral health care.
