Seacoast Capital Exits Non-Control Growth Capital Investment in Walden Behavioral Care
BOSTON, Oct. 27, 2021 /PRNewswire/ -- Seacoast Capital ("Seacoast"), a lower middle market non-control growth capital investor, announced today its exit from its investment in Walden Behavioral Care ("Walden" or "the Company"). Over the term of Seacoast's investment, the Company nearly doubled revenue, EBITDA, and its daily patients served. Seacoast exited its investment in Walden in a sale to Monte Nido & Affiliates, one of the country's leading eating disorder treatment providers.
Founded in 2003 by Stuart Koman, Ph.D., and headquartered in Waltham, Massachusetts, Walden is one of the premier providers of behavioral health services for individuals with eating and mood disorders. The Company was one of the first healthcare providers in the country to offer a full continuum of medical, behavioral, and nutritional care services for the treatment of eating disorders across inpatient, residential, partial hospitalization, and intensive outpatient care settings.
In June 2014, Seacoast initially invested in Walden to assist with the organic growth of the business. Seacoast then made two follow-on investments in the Company in 2017 and 2019 to further expand Walden's geographic footprint into the Atlanta market and to build a new hospital in Dedham, Massachusetts. In total, Seacoast invested $11.25 million in subordinated debt and preferred stock in Walden over its 7-year hold period.
"Seacoast Capital has been a great partner for us," said Dr. Koman. "They've helped us navigate our many expansion opportunities, stayed with us through strategy changes due to the pandemic, and made additional capital available as we continued to scale. We've appreciated having Seacoast on our Board."
"Stu Koman and his team have always been committed first to their patients. The work they do in helping people of all ages with eating and mood disorders has been remarkable—they save lives every day," said Tom Gorman, a Partner at Seacoast Capital. "In addition, the Walden team's ability to make keen business decisions and expand during the pandemic is testament to their abilities. We will miss being a part of the Walden team."
In addition, Alan Rich, a Vice President at Seacoast Capital, said, "Walden's ability to leverage their multi-channel delivery model showed the agility of the team across every care setting. We wish Walden well as they commence their next chapter with Monte Nido."