BRENTWOOD, Tenn.--(BUSINESS WIRE)--AAC Holdings, Inc. (NYSE: AAC), through its subsidiary AAC Rhode Island Acquisition Sub, LLC, has signed a definitive agreement to acquire Clinical Services of Rhode Island, Inc. (“CSRI”), a provider of intensive outpatient substance abuse treatment services, for $665,000 in cash and $1,335,000 worth of restricted shares of AAC Holdings’ common stock. The acquisition, which is subject to certain closing conditions such as the assignment of certain contracts and the receipt of certain licenses necessary to operate the business, is expected to close during the second quarter of 2015.
CSRI operates three outpatient treatment facilities located in Greenville, Portsmouth and South Kingstown, Rhode Island. CSRI co-owners Reinhard Straub and Peter Letendre each have over 25 years experience in the addiction and mental health fields. Following the acquisition, Mr. Straub will continue as Clinical and Business Development Liaison for American Addiction Centers, Inc., and Mr. Letendre will serve as CEO and Clinical Director Rhode Island Operations. CSRI generated revenue of approximately $1.2 million and Adjusted EBITDA of approximately $0.2 million for the year ended December 31, 2014.
Michael Cartwright, Chairman and Chief Executive Officer of AAC Holdings, noted, “Extending our outpatient center network is a critical and necessary component of the addiction treatment services we provide our clients. CSRI will join our newly licensed outpatient center in Las Vegas, Nevada and a new outpatient center under construction in Arlington, Texas, giving us the ability to provide a full continuum of care and transition clients as they become ready to leave our inpatient centers and step down their treatment.”
About American Addiction Centers
American Addiction Centers is a leading provider of inpatient substance abuse treatment services. We treat adults as well as adolescents who are struggling with drug addiction, alcohol addiction, and co-occurring mental/behavioral health issues. We operate seven substance abuse treatment facilities and one mental health facility specializing in overeating disorders. Located throughout the United States, these facilities are focused on delivering effective clinical care and treatment solutions.
Forward Looking Statements
This release contains forward looking statements within the meaning of the federal securities laws. These forward looking statements are made only as of the date of this release. In some cases, you can identify forward-looking statements by terms such as “anticipates,” “believes,” “could,” “estimates,” “expects,” “may,” “potential,” “predicts,” “projects,” “should,” “will,” “would,” and similar expressions intended to identify forward-looking statements, although not all forward-looking statements contain these words. Forward-looking statements may include information concerning AAC Holdings’ possible or assumed future results of operations, including descriptions of AAC Holdings’ revenues, profitability, outlook and overall business strategy. These statements involve known and unknown risks, uncertainties and other factors that may cause our actual results and performance to be materially different from the information contained in the forward looking statements. These risks, uncertainties and other factors include, without limitation: (i) our inability to operate our facilities; (ii) our reliance on our sales and marketing program to continuously attract and enroll clients; (iii) a reduction in reimbursement rates by certain third-party payors; (iv) our failure to successfully achieve growth through acquisitions and de novo expansions; (v) uncertainties regarding the timing of the closing of the transaction; (vi) the possibility that a governmental entity may prohibit, delay or refuse to grant approval for the consummation of the transaction or the assignment of certain contracts; and (vii) general economic conditions, as well as other risks discussed in the “Risk Factors” section of the Company’s registration statement on Form S-1, as amended, and other filings with the Securities and Exchange Commission. As a result of these factors, we cannot assure you that the forward looking statements in this release will prove to be accurate. Investors should not place undue reliance upon forward looking statements.
