July 11, 2017

Yukon Supports Centre Partners and Bradford Health Services on an Add-on Acquisition

MINNEAPOLIS, MN (June 30, 2017) — Yukon Partners (“Yukon”), a provider of junior capital for middle market private equity transactions, is pleased to announce its support of Bradford Health Services’ (“Bradford”) acquisition of Red Oak Recovery and The Willows at Red Oak Recovery (collectively “Red Oak”), a provider of trauma-informed substance abuse and dual diagnosis treatment for young adults across the country.

The combination of Bradford and Red Oak creates one of the largest providers of substance abuse treatment and recovery services in the Southeastern United States. Bradford and Red Oak share the same core values and treatment philosophies, and this unique partnership strengthens the position of both programs in the young adult recovery field, expanding access to care and providing unprecedented treatment opportunities to patients across the acuity spectrum.

Bradford is a current portfolio company of Centre Partners, a New York based private investment firm. Acquisition capital was provided by Yukon, NXT Capital, and the existing equity investors. Dorsey & Whitney LLP served as legal counsel to Yukon.

“Bradford and Red Oak are both patient centered, committed to providing excellent care, and passionate about recovery,” commented Clay Simmons, CEO of Bradford Health Services. “We welcome the Red Oak team to Bradford and look forward to the positive impact we will have together in the future.”

“Joining forces with Bradford extends the footprint of our young adult services and solidifies our leadership in the young adult recovery field,” stated Jack Kline, Founder & CEO of Red Oak, who will continue to lead the Red Oak organization as it continues to expand.” I am thrilled to partner with such a highly regarded group.”

“We are excited about Bradford’s acquisition of Red Oak and the growth opportunities for the combined business,” stated Jeff Bartoli, Managing Director of Centre Partners. “The acquisition expands Bradford’s geographic footprint within the Southeast, enhances its breadth of service offerings, and adds a group of highly regarded clinical and management personnel to the Bradford organization. We are thrilled to have our friends at Yukon join us as we look to continue executing on our investment thesis.”

Michael Hall, Managing Partner of Yukon added, “We are excited to support Centre Partners and management as they continue to execute their value-added strategy. This investment is separately noteworthy on two levels as it represents the final platform investment of Yukon Capital Partners II, our $406 million 2014 vintage fund, and marks a 30-year relationship with our friends at Centre Partners.”

About Bradford Health and Services
Bradford Health Services, based in Birmingham, Alabama, is one of the largest and longest running providers of substance abuse treatment and recovery services in the Southeast. Through 28 individual clinical facilities, Bradford offers early intervention services, crisis response, intensive outpatient care, partial hospitalization and residential care, inpatient detox, and transitional living and life skills programming. Additional information is available at www.bradfordhealth.com.

About Red Oak Recovery
Red Oak Recovery is a leading provider of trauma informed substance abuse and dual diagnosis treatment for young adults across the country. With two campuses located in the pristine Blue Ridge Mountains of North Carolina, Red Oak’s management and clinical staff have deep experience integrating experiential education, substance abuse, and mental health treatment programs that generate optimal outcomes and long-term recovery. Additional information is available at www.redoakrecovery.com.

About Yukon Partners
Yukon Partners is an independent and unaffiliated junior capital provider, primarily serving middle market private equity sponsor led business transactions in the U.S. and Canada. The transactions in which Yukon invests include buyouts, growth and platform strategies, recapitalizations, mergers/acquisitions, and public-to-private buyouts. Yukon typically invests $10 to $50 million per transaction and currently manages approximately $1.2 billion across three funds. Yukon Partners is based in Minneapolis, Minnesota. For more information, please visit www.yukonpartners.com.

About Centre Partners
Centre Partners, founded in 1986, is a leading private equity firm with a middle market focus that seeks to make acquisitions and equity investments alongside management teams who have or desire to have a meaningful economic stake in the future success of their businesses. Centre Partners has invested over $2 billion in more than 70 transactions, partnering with management teams across a broad spectrum of industries. Centre Partners provides those teams with access to its unique resources, which include an extended network of experienced and proven operating executives. The firm is currently investing through its sixth fund. Additional information is available at www.centrepartners.com.

About Dorsey & Whitney
Clients have relied on Dorsey since 1912 as a valued business partner. Dorsey serves clients from offices across the United States and in Canada, Europe and the Asia-Pacific region. The firm is a leader in finance work of all kinds, and has a demonstrated track record of financing corporate expansion through a variety of junior capital structures, including mezzanine or subordinated notes, second lien loans, unitranche debt, equity co-investments, and preferred equity investments. Dorsey also has deep experience in all facets of M&A and related finance, representing senior lenders, PE funds, mezzanine investors, venture capital investors, and clients in fund formation, management buyouts, spin-offs, going private transactions, dispositions, and other financings. For more information, visit www.dorsey.com.

For more information, please contact:
Michael Hall
Managing Partner
Yukon Partners