GREENWICH, Conn., Oct. 13 /PRNewswire/ -- North Castle Partners, a leading private equity investor in consumer and healthcare companies that benefit from healthy living & aging trends, and DLJ Merchant Banking Partners announced that they have reached an agreement in principle to sell CRC Health Group to Bain Capital in a transaction valued at $720 million. The transaction is expected to close in early 2006. North Castle and DLJ Merchant Banking initially invested in CRC in August 2002.
CRC is the nation's largest provider of drug and alcohol treatment services, helping more than 20,000 people daily in 22 states. Based in Cupertino, California, the company operates more than 90 residential, outpatient and opiate treatment centers.
North Castle has worked closely with the company's management team to build a nationally recognized leader in this large and fragmented segment of the healthcare industry. Working with North Castle, CRC has experienced rapid organic growth, completed six acquisitions and built a robust infrastructure to support its internal and external growth. CRC represents North Castle's largest realization to date.
"We are proud of the extraordinary business we have built in partnership with the CRC management team, led by CEO Barry Karlin," said North Castle Managing Director Douglas Lehrman. "Under the leadership of the management team, we believe that CRC is well positioned for the next stage of its development.
"Our role as investors is to work with management teams to assist our companies in achieving new levels of growth through changes in capital allocation, strategy, operations and the implementation of systems, processes and controls necessary to support the execution of the growth plan," he continued. "CRC is an excellent example of our approach to building best-in- class companies within fragmented, fast-growing markets."
"Working with North Castle has brought great benefits to us," said Karlin. "We began our partnership with a common vision for the development of a nationwide network of chemical dependency facilities offering a continuum of treatment services. We have come a long way toward achieving that and today we are a leader in treating Americans facing substance abuse issues. We are proud of what we have built with North Castle and DLJ Merchant Banking, and we look forward to continuing this growth trajectory with the help and support of Bain Capital."
North Castle brought additional investors into CRC throughout its ownership including Ontario Municipal Employee Retirement System and Northwestern Mutual Life Insurance Company, among others.
CRC's shareholders were advised by J.P. Morgan Securities Inc. and Merrill Lynch in the transaction.
About North Castle Partners
North Castle Partners is a leading private equity firm focused on investments in consumer and healthcare businesses that benefit from healthy living and aging trends. To date, North Castle has invested more than $1.0 billion in companies focusing on healthcare, healthy food and beverages, nutritional supplements, natural personal care products, day spas, fitness clubs and equipment, and luxury travel. As a result of its unique focus, North Castle has developed an extensive network and knowledge base that enable it to bring a proprietary value-added approach to investments, in partnership with accomplished, entrepreneurial management teams working to build leading companies. For more information visit www.northcastlepartners.com
About DLJ Merchant Banking Partners
DLJ Merchant Banking Partners (DLJMBP) is a leading private equity investor that has a 20-year record investing in leveraged buyouts and related transactions across a broad range of industries. DLJMBP, with offices in New York, London, Los Angeles and Buenos Aires, is part of Credit Suisse First Boston's Alternative Capital Division (ACD), which is one of the largest alternative asset managers in the world, with more than $32 billion of assets under management. ACD is comprised of $24 billion of private equity assets under management across a diverse family of funds, including leveraged buyout funds, mezzanine funds, real estate funds, fund of funds, secondary funds and venture capital funds, as well as approximately $8 billion of assets under management through its leveraged loan and CDO businesses.
North Castle PartnersCONTACT: Chris Tofalli, or John Higgins, both of Broadgate Consultants,LLC, +1-212-232-2222, for North Castle Partners
Web site: http://www.northcastlepartners.com/
