Trinity Hunt first met with Eating Recovery Center (the "Company") in 2009 in connection with its thematic focus on the eating disorder industry. At that time, however, Dr. Ken Wiener, founding partner and chief executive officer of Eating Recovery Center had no need for a capital partner, but we agreed to stay in touch. The Company’s needs changed though in early 2010, when it decided to significantly expand its acute care hospital facilities and continuum of care capabilities. Towards that end, Dr. Weiner contacted THP for assistance given our significant industry expertise within the eating disorders space and our historical relationship with Eating Recovery Center. Shortly thereafter, THP made a minority investment in ERC to provide management with the resources necessary to achieve its growth objectives.
Since THP’s investment and the formation of this significant partnership, the Company has achieved incredible growth. As typical with THP investments, we initially helped Eating Recovery Center implement infrastructure improvements, including creating new incentive systems for management, instituting reporting to monitor operational performance, and implementing enhanced marketing strategies. Once the necessary infrastructure improvements were in place to support growth, the Company moved aggressively to open three de novo facilities in Colorado over the next twenty-four months, expanding its capacity by 200%.
Not yet satisfied, Dr. Weiner and THP then began to embark on an add-on acquisition strategy in order to significantly expand the Company’s spectrum of care and geographical reach. Given THP’s M&A expertise, we were able to work hand in hand with management to structure and execute two meaningful acquisitions in an eighteen month timeframe.
Having created a nationally renowned center of excellence for treating eating disorders, Eating Recovery Center and THP initiated a recapitalization process to capitalize on the fruits of management’s labor and the Company’s storied growth. When it was all said and done, Eating Recovery Center and THP’s partnership efforts built a business that tripled its revenues and quintupled in enterprise value, while adding nearly 200 new employees across three states. In December 2012, the Company and THP culminated their partnership with a successful exit to a financial buyer.
Disclaimer: All information provided herein is for informational purposes only, this case study is illustrative of the types of investments the adviser would make, and should not be relied upon to make an investment decision. Past performance results relate only to the time periods indicated and are not an indication of, nor a reliable proxy for future performance. An investor runs the risk of losing all of its investment. This presentation is neither an offer to sell nor a solicitation of any offer to buy any securities, investment products or investment advisory services.