H2C Advises Centra Health on
Divestiture of Rivermont Schools
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About Centra Health
Centra is a regional not-for-profit healthcare system based in Lynchburg, Va. It was created in 1987 through the merger of the Lynchburg General and Virginia Baptist hospitals. With more than 8,500 employees, 400 employed providers and physicians, and a medical staff of nearly 800, providing care in 70 locations, Centra serves over 500,000 people throughout central and southern Virginia. Centra provides medical services to patients across a geographic area roughly the size of the state of New Jersey, covering approximately 8,000 square miles, through many facilities and practices.
About Rivermont Schools
Founded in 1986, Rivermont Schools are private, not-for-profit schools with 13 campuses throughout Virginia. Rivermont Schools provides a therapeutic educational program for students ages 5-22 with special needs, including autism, who have difficulty learning in a traditional school setting.
About Hammond Hanlon Camp LLC ("H2C")
H2C is an independent strategic advisory and investment banking firm committed to providing superior advice as a trusted advisor to healthcare organizations and related companies throughout the United States. H2C’s professionals have a long track record of success in healthcare mergers and acquisitions, capital markets, real estate, and restructuring transactions, acting as lead advisors on hundreds of transactions representing billions of dollars in value. H2C offers securities through its wholly owned subsidiary H2C Securities Inc., member FINRA/SIPC. For more information, visit h2c.com.
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FOR IMMEDIATE RELEASE
"H2C’s leadership and guidance enabled Centra to mitigate the challenges associated with the pandemic’s impact on the transaction process and timeline.”
CFO, Centra Health
ATLANTA — Oct. 6, 2020 — Hammond Hanlon Camp LLC (“H2C”), a healthcare-focused strategic advisory and investment banking firm, served as the exclusive financial advisor to Centra Health (“Centra”) on its sale of Rivermont Schools (“Rivermont”), the leading special education provider in Virginia, to Salisbury House, LLC (“Salisbury”).
Rivermont is comprised of 13 special education schools throughout Virginia and serves students with emotional, behavioral, learning, and developmental challenges, including autism. Salisbury is the owner of New Story Schools, which operates over 40 special education schools across Pennsylvania, New Jersey, and Ohio.
In early 2020, Centra’s leadership began a thoughtful process of seeking a partner that would provide Rivermont with the capital, resources, and expertise needed to succeed, grow, and meet the high demand for special education in Virginia. “We believe it is in the best interest of the students that the schools be part of an organization that specifically focuses its mission on education and will provide the necessary support for future success,” said Andy Mueller, President and CEO of Centra. “Moreover, Centra’s core business is health care, and this sale will allow us to focus on enhancing the care we provide to the communities we serve.”
H2C conducted a marketing process that achieved a strong valuation and timely closing despite the headwinds of COVID-19 and uncertainty surrounding the fall semester and education funding. “H2C’s leadership and guidance enabled Centra to mitigate the challenges associated with the pandemic’s impact on the transaction process and timeline,” said Doug Davenport, CFO of Centra. “H2C was a true partner with our leadership team and helped us achieve the best possible outcome.”
H2C Principal Richard Bayman led the transaction. “H2C worked with Centra to maintain a competitive process and ensure certainty of closure during the pandemic. Ultimately, Centra found a partner that provided a high probability of success and is a strong cultural fit,” Bayman said. “H2C is honored to serve as Centra’s advisor.” Email Rich.