WindRose Health Investors, LLC Announces Recapitalization of Kolmac Clinic, LLC

NEW YORK, Sept. 5, 2018 /PRNewswire/ -- WindRose Health Investors, LLC ("WindRose"), a healthcare-focused private equity firm, announced that funds managed by WindRose have completed a recapitalization of Kolmac Clinic, LLC ("Kolmac"), an East Coast-based outpatient addiction treatment company.

Kolmac provides evidence-based outpatient addiction treatment that combines psychosocial services with medication assisted therapy to effectively treat a patient's substance use disorder and co-occurring psychiatric disorders over a long-term period in a low-cost setting. Kolmac focuses exclusively on outpatient services, offering outpatient detoxification, intensive outpatient rehabilitation, and continuing care services for the working insured population in its core markets of Maryland, Northern Virginia, and Washington D.C. Terms of the transaction were not disclosed.

WindRose partnered with Kolmac's executive team to recapitalize the business and to provide additional capital to support future growth. With WindRose's investment, Kolmac will be able to open offices in new markets across the United States, expand its outpatient services to treat more patients, and increase its market share within its existing markets.

Dr. George Kolodner, Kolmac's Founder and Chief Clinical Officer, will continue with the company in his current leadership role and will help drive Kolmac's growth strategy of replicating its highly successful, outpatient treatment model in new markets.

"We are excited to partner with WindRose who shares our same vision for providing high quality, effective treatment to patients in an outpatient setting, allowing patients to continue with their regular work and daily routine," said Dr. Kolodner. "WindRose's strong network of relationships and operational resources will be incredibly valuable as we look to open new centers and increase access to effective treatment."

"WindRose believes that the outpatient therapy model supplemented with medication assistance is the most effective care model, in terms of costs and outcomes, to treat patients with substance use disorder," said Alex Buzik, Partner with WindRose. "We have evaluated many businesses in this sector and have identified Kolmac as the premier platform. Kolmac has an exceptional reputation for providing high quality clinical care and we are pleased to be partnering with them as they expand into new markets."

Coker Capital acted as financial advisor to Kolmac. Cadence Bank served as the lead arranger for a senior secured credit facility. McDermott Will & Emery LLP acted as legal advisor to WindRose and Gordon Feinblatt LLC acted as legal advisor to Kolmac.

About Kolmac

Founded in 1973, Kolmac is the first intensive outpatient rehabilitation program in the country and has treated more than 30,000 patients over its 45-year operating history. Kolmac provides outpatient detoxification, rehabilitation, and continuing care programs for adults who have problems with alcohol and other addictive substances, as well as those with gambling problems. The intensive, structured outpatient programs available at Kolmac allow patients to receive effective treatment without needing to leave work or family responsibilities. Kolmac has six treatment centers serving Maryland, Northern Virginia, and Washington D.C. For more information, please visit www.kolmac.com.

About WindRose Health Investors

WindRose Health Investors, formerly MTS Health Investors, makes equity investments in companies that operate within the services sectors of the healthcare industry. WindRose Health Investors focuses on companies with profitable business models and a demonstrated ability to deliver cost-effective solutions.  WindRose Health Investors manages over $700 million of capital and is currently investing out of its fourth fund. WindRose Health Investors is based in New York City and invests in companies throughout the United States. For more information, please email us at [email protected].

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SOURCE WindRose Health Investors