American Addiction Centers (AAC) and its indirect subsidiary, Oxford Treatment Center, LLC, have signed an agreement to acquire The Oxford Centre, Inc. in Mississippi for $35 million in cash, according to an announcement. The purchase marks the sixth acquisition for AAC in 2015.
The Oxford Centre's main property is a 76-bed residential treatment center, including 12 detox beds, with a medical services facility, patient cabins, fitness center, equestrian center and outdoor pavilion. Located 65 miles from Memphis, the center is accredited by CARF International and is a member of the National Association of Addiction Treatment Providers (NAATP).
In addition to the residential facility, AAC will also acquire the operations associated with three outpatient treatment locations in Oxford, Tupelo and Olive Branch, Miss. According to its website, The Oxford Centre also offers sober living.
The organization generated revenue of approximately $12.2 million and adjusted EBITDA of approximately $5.6 million in 2014, and accepts commercial insurance.
“The Oxford Centre offers a proven holistic approach to treating the mind, body and spirit on a campus filled with many outdoor elements and amenities. Through this purchase, we will have the opportunity to reach more clients in Mississippi and surrounding states, as well as serve a growing referral base,” said Michael Cartwright, Chairman and CEO of AAC Holdings, in a statement.
The purchase is expected to be completed during the second half of the year after receipt of governmental approvals and licensing.