KALAMAZOO — Private equity-backed Beacon Specialized Living Services Inc., a provider of specialized residential health care services, has expanded into Minnesota.
The deal for Saint Paul, Minn.-based Owakihi Inc. marks the for-profit Beacon’s first foray outside of Michigan, according to a statement.
Owakihi serves more than 200 individuals across 14 sites in the seven counties in the Twin Cities region. The company, founded in 1978, provides home and community-based support services to people with intellectual and developmental disabilities and mental health needs.
Terms of the deal were not disclosed. Owakihi was represented in the deal by The Braff Group, a Pittsburgh, Pa.-based health care industry M&A adviser.
The deal is an add-on acquisition for Beacon, a portfolio company of Dallas- and Nashville-based Pharos Capital Group LLC. The private equity firm hopes to position Beacon as a regional, multi-state platform to work with public and private agencies to serve people with intellectual and developmental disabilities and mental health.
Beacon is one of Michigan’s largest for-profit providers of specialized residential health care services.
“Beacon is developing multiple lines of mental health services for individuals with extreme behaviors and complex needs,” Beacon CEO Darren Hodgdon stated. “Owakihi serves like-individuals with different delivery models that will further broaden our current capabilities. Their highly-trained and qualified staff, and emphasis on ‘Person Centered Planning,’ optimizes successful outcomes and will help fuel our platform’s growth as we continue to fill critical gaps in the healthcare system that drive excessive utilization.”
Beacon offers behavioral health care through specialized residential adult foster care facilities and community living service apartments at 60 locations across Michigan.