Strategic Behavioral Health, LLC Acquires Montevista Hospital and Red Rock Behavioral Health in Las Vegas

MEMPHIS, Tenn.--(BUSINESS WIRE)-- Strategic Behavioral Health, LLC (SBH), a national provider of inpatient and outpatient services, announced that effective January 1, 2012, it has acquired the assets of Montevista Hospital (Montevista) and Red Rock Behavioral Health Hospital (Red Rock) located in Las Vegas, Nevada from Universal Health Services, Inc. (UHS). The acquisition is being made pursuant to the divestiture requirements agreed upon by the Federal Trade Commission, the Nevada Attorney General, and UHS following UHS’s acquisition of Psychiatric Solutions. SBH is a portfolio company of Dobbs Management Service, LLC (DMS) which represents the John Hull Dobbs family of Memphis.

The Montevista and Red Rock facilities are licensed acute psychiatric hospitals with 101 total beds providing services on two campuses in Las Vegas. Montevista has served Las Vegas for over 25 years as a provider of acute behavioral healthcare services including geriatric, adult, chemical dependency, and child and adolescent areas. Montevista’s sister facility, Red Rock, was established in 2005 to expand inpatient acute behavioral services to the geriatric population. The facilities bring the total existing or planned beds for Strategic Behavioral Health, LLC to over 350 beds in North Carolina, Colorado, and Nevada across five facilities.

Ben Winbery, Chief Executive Officer of both the Montevista and Red Rock facilities commented, “I am very pleased to be joining such a solid company with a true commitment to quality clinical care and a long-term view of the operations.”

Jim Shaheen, Founder and Chief Executive Officer of SBH, stated in a press release, “We are excited to be entering the Las Vegas market through the acquisition of Montevista and Red Rock. We are impressed with its management and staff and their attention to patient-centered care. We believe we have an opportunity to significantly grow both facilities.”

Shaheen added, “While SBH has historically focused on organic growth through the opening of new facilities, this acquisition was too attractive to pass up given the expansion opportunities it presents. Because of the high quality care being provided by the facilities, both are operating at or near capacity. As a result, we will be adding 60-80 additional beds at the Montevista site. We anticipate that construction will begin in 2012.”

Edward Dobbs, President of DMS, commented, “This Las Vegas acquisition is highly complementary to SBH’s existing assets and provides a great base for further growth. We look forward to additional opportunities to invest in SBH’s growth through greenfield facilities and highly selective strategic acquisitions. Our long-term goal is to make SBH a leading private provider of behavioral healthcare services in the nation.”

SBH worked with Fifth Third Bancorp, First Tennessee Bank, and Pinnacle Financial to finance the Montevista and Red Rock acquisitions. When coupled with the financing for the expansion of North Carolina and Colorado operations, the financing provides $40 million in funding with the ability to expand for future projects.

About Strategic Behavioral Health, LLC

Strategic Behavioral Health was founded to design, build, and operate state-of-the art behavioral health facilities throughout the United States. Based in Memphis, SBH currently operates facilities in Colorado and North Carolina. It is constructing new and expanded facilities in both Colorado and North Carolina. Strategic Behavioral Health is dedicated to providing the highest quality behavioral health services. Please visit the Strategic Behavioral Health website.

About Dobbs Management Service, LLC

Through DMS, the John Hull Dobbs family invests with a long-term perspective. The Dobbs family has a nearly 100 year history of successful long-term investing in businesses with good market positions, growth opportunities and exceptional management teams. DMS’s investment strategy is flexible but generally focuses on business-to-business services companies as well as healthcare services and distribution.

The family currently owns several companies in addition to SBH, including Premier Distributing, a beverage distribution company; DYK Automotive, LLC, a national automotive aftermarket oil, chemicals and parts distributor; Frenkel & Company, LLC, an international commercial insurance and healthcare benefits broker based in New York, NY; JHD Dental, LLC, a children’s dental clinic operator; and, Potter Electric Signal, LLC, a market leading fire and security controls manufacturer.

Historically, the Dobbs family has owned Dobbs Automotive, a national automobile dealership group; Unison Health Plans, a private multi-state Medicare and Medicaid HMO; and Dobbs International, an airline catering and restaurant company. For additional information about DMS and the portfolio companies of the John Hull Dobbs family, please refer to the Dobbs Management website.

About Fifth Third Bancorp

Fifth Third Bank arranged and led a Bank syndicate to provide financing for the acquisition. Fifth Third Bancorp is a diversified financial services company headquartered in Cincinnati, Ohio with over $115 billion in assets. Headquartered in Nashville, Fifth Third’s Healthcare maintains over $7.0 billion in commitments to various healthcare companies including acute care, psychiatric hospitals, outpatient services, long term care, medical devices, managed care, information technology, and other related healthcare services. Fifth Third Bank focuses on financing solutions for acquisitions, growth, recapitalizations, refinancing and working capital facilities, and bridge loans to capital markets transactions.

First Tennessee National Bank and Pinnacle National Bank also participated in the Fifth Third led Credit Facility.


Dobbs Management Service, LLC
Chris Crosby, 901-684-1082

KEYWORDS:   United States  North America  Nevada  Tennessee

INDUSTRY KEYWORDS:   Health  Hospitals  Mental Health