The arrival of investing in the combination of hospitality and addictions behavioral health means people now likely to sit up and take notice big-time.
(1888PressRelease) October 30, 2012 - The time has come for people to sit up and take notice that it is no longer acceptable to go to treatment for addictions and to be "institutionalized".
In a recent article by the US online and hardcopy Treatment Magazine's publisher and renowned Addictions advocate Ted Jackson who stated that it was a recent move that the arrival of investors like the Chicago-based Pritzkers, whose fortune is based on the hospitality giant Hyatt, paints a bigger target on the addictions behavioral health space as herd-like Wall Street is now likely to sit up and take notice big-time. And, thus, for addiction treatment entrepreneurs nationwide this deal may take the form of a gift, perhaps single-handedly ratcheting up center purchase cash-flow multiples. For the many investment groups pursuing growth by acquisition strategies in the addictions market the arrival of the Pritzkers is very much the opposite of a gift.
Foundations CEO Rob Waggener, who confirmed the Pritzkers' intent to be a very big presence in addictions behavioral health in coming years. He also, in a round about way, admitted that Foundations, with big money now behind it, is on the buy side big time. Facilitating the deal was Foundations board member Doug Geoga, for decades close to Nick Pritzker as CEO of the family's Hyatt chain and now a deal facilitator/investor at a boutique firm called Saltcreek, according to Waggener.
In Canada things are a little less dramatic and not quite the same impact is felt but with the Muskoka Recovery Center setting new presidence things are now about to change.
As stated in the Treatment Magazine article, Waggener believes the customer service expertise Foundations acquires through this deal will give a significant competitive leg up over other addictions providers. But he says that, even with the link to Hyatt, there are no plans to meld the resort business and the addiction treatment business at Foundations like there increasingly has been throughout the addictions industry. A recent example is out of Canada, where pioneering private center entrepreneur John Haines has spent millions building out a 50-bed property north of Toronto called Muskoka Recovery Center. The intention there is to create a treatment center/resort hybrid whose aim is ultimately a flourishing community that serves a wide range of people at different stages of the recovery continuum. This added to their 2 other centers in and around Toronto makes them one of the 3 largest in all of Canada