Pacific Child and Family Associates (“PCFA”), now known as Autism Learning Partners, is a portfolio company of Great Point Partners (“GPP”), a CT-based private equity group. PCFA is a leading provider of therapy and related services to children and adults with ASD. PCFA provides ABA therapy, and speech, occupational, physical therapy, and psychologist services to this population. At the time of the transaction, PCFA had expanded operations into several states primarily through a few small acquisitions, with more planned. PCFA’s client base includes commercial insurance beneficiaries as well as behavioral health agencies and regional center clients in California, school districts, and military families.
Brookwood advised PCFA and GPP on an equity capital raise/recapitalization to finance the acquisition of Autism Intervention Specialists (“AIS”) in Massachusetts and to provide additional capital for continued growth, including funding further build out of its operating infrastructure and platform. Scopia Windmill Fund LP managed by Scopia Capital Management invested in PCFA and the company refinanced its debt.
Client Objective – GPP sought additional equity at a compelling valuation that would take into account the investment of capital and expense PCFA had incurred for it to grow into a multi-state provider, as well as to capture investor interest in the emerging autism treatment sector. GPP sought to maintain control of the company while strengthen PCFA’s financial position so it could make further acquisitions and expand its infrastructure.
Excellent Outcome – Capital was raised on attractive terms, facilitating a successful closing of the acquisition of AIS, adding a valuable equity sponsor who had strategic knowledge of the sector, while strengthening PCFA financially. PCFA has since recruited talented leadership including a CEO and a new Chief Clinical Officer, as well as completed a substantial acquisition of an ABA provider in its key western region.
Press Release Excerpt
We are pleased to announce that Brookwood Associates served as financial advisor to Pacific Child & Family Associates (“PCFA”), a Great Point Partners portfolio company, on an equity financing in conjunction with its recent acquisition of Autism Intervention Specialists (“AIS”). Scopia Windmill Fund LP, managed by Scopia Capital Management, invested in PCFA to support the acquisition and provide additional capital for continued growth.
AIS, which is based in Worcester, MA, provides high quality care to children on the autism spectrum throughout the northeastern United States. The acquisition, which is the third completed by Pacific Child, will allow Pacific Child to extend its geographical presence and augment its service offering and clinical capabilities. The combined entity will now provide access to over 1,000 therapists across more than 30 states.
This transaction extends Brookwood’s successful track record advising privately held companies in behavioral healthcare and is the second transaction we have completed for an autism therapy provider this year.