Acute Behavioral Health Announces Acquisition of Hallmark Youthcare

Acute Behavioral Health, Inc. today announced the company has completed the acquisition of Hallmark Youthcare, the largest short-term residential treatment program in the commonwealth of Virginia.  Petra Capital, Harbert Credit Solutions, Elm Creek Partners and Granite Growth Health Partners invested in Acute Behavioral Health to finance the acquisition. The acquired assets consist of 82 inpatient PRTF beds for young people with behavioral and mental health needs.

Commenting on the announcement, Mike McCulla, Chief Executive Officer of Acute Behavioral Health, stated, “The acquisition of Hallmark provides a unique opportunity for Acute Behavioral Health to expand its footprint in Virginia. Hallmark’s 46-year history of providing quality care and services focused on reuniting patients with their families aligns well with ABH’s development vision and operating model. This transaction will enable Hallmark to continue to provide much needed mental health services to young people and marks the beginning of exploring new ways of helping young people with behavioral and mental health challenges to remain at home with their families.“

“We welcome Hallmark’s dedicated clinical and support staff to Acute Behavioral Health, and we look forward to a smooth integration of our operations. We share a common culture focused on compassionate, patient-centered care. Together, we will focus on our primary objective to reach more patients and meet the critical demand for behavioral health services for young people in Virginia,” added Al Smith, Chief Operating Office of Acute Behavioral Health.

About Acute Behavioral Health
Acute Behavioral Health (“ABH”) is a healthcare platform of inpatient PRTFs and outpatient behavioral health programs for young people that align with the Federal Family First Prevention Services Act’s initiative toward keeping children with their families and reducing the number of children who are placed in state custody simply to access treatment. ABH was formed with an initial investment from Petra Capital Partners and Harbert Credit Solutions in partnership with Elm Creek Partners (http://www.elmcreekpartners.com) and Granite Growth Health Partners (http://www.granitegrowthhealthpartners.com).

About Petra Capital Partners
Petra Capital Partners is a private equity firm engaged in providing growth capital for companies located throughout the United States. Our investment team has an established track record of success spanning over 20 years and deploying more than $700 million of capital invested into more than 100 companies. We are seeking investments for our new SBIC fund, Petra Growth Fund IV. We can invest up to $20 million per company in equity or debt securities.

About Harbert Credit Solutions
Harbert Credit Solutions (“HCS”) is a private capital investment strategy of Harbert Management Corporation. Since the inception of HCS’s first fund in 2000, the HCS funds have successfully invested approximately $920 million in 130 companies. HCS remains committed to the lower end of the middle market and is actively seeking investments across all industries.