An expansion-hungry behavioral healthcare company has picked up a fellow Richmond-based health services provider as its latest acquisition, with more deals in the works for the coming year.
NcgCare, the parent entity of Virginia-based National Counseling Group and its subsidiaries, has purchased Southside-based TSG Services, a provider of adult day support services for people with intellectual and developmental disabilities that operates under the name Independent Adult Care Services (IACS).
The deal closed Oct. 1. Terms were not disclosed.
Frank Viera, president and CEO of ncgCare, said the company was approached by IACS owner Tiffany Gunn, who was looking to sell the firm she founded in 2007. He said the seven-person company, while small, was an appealing acquisition because it adds to ncgCare’s suite of behavioral health services as it branches out from mental-health-specific care.
“Historically, we’ve primarily been a mental health service provider, and mental health services is one component of the larger behavioral health continuum,” Viera said. “IACS is helping us to fill out our full continuum of behavioral health services.”
He said the company has placed some of its management team at IACS’s 2,000-square-foot facility at 9931 Hull Street Road in Chesterfield County. He said it plans to rename IACS in an upcoming rebrand.
With the sale, Gunn is no longer directly involved with IACS but said she remains available to advise if needed. She said she identified ncgCare as a company that could take IACS to the next level.
“I thought they would be a better fit for the company and wanted to give it a new face, a new look,” Gunn said.
In its nine-year run, Gunn said IACS developed a reputation of taking on the most challenging clients who in many cases are dealing with multiple intellectual disabilities. At its busiest, she said IACS took on as many as 30 clients per day, providing day support services such as onsite job training, volunteer work and shopping trips, and community outings to teach life skills.
Gunn started IACS after stints with private and state government service providers, including Southside Virginia Training Center in Petersburg. She said the sale of the company will allow her to pursue new volunteer work and other opportunities in the behavioral healthcare field.
The acquisition is the latest for ncgCare, which a year ago purchased Turning Point Family Care, a North Carolina-based behavioral health agency, and closed on a management contract for Pennsylvania-based Community Alternatives, which was to be the company’s second acquisition. Viera said the targeted close date for Community Alternatives has slipped as the company awaits state regulatory approval, but he said it is still on track to close on the deal on April 1, 2017.
Viera said more deals are also in the works, with letters of intent in development for three other providers in Pennsylvania, North Carolina and South Carolina. He has said the company is aiming to double its size over a five-year span in terms of annual expenditures, which last year totaled $60 million.
The company recently obtained growth capital from NewSpring Mezzanine, a small business investment division of Pennsylvania-based NewSpring Capital. The deal was announced earlier this month by Focus Investment Banking, a national middle-market investment banking firm.
Started in 1993 as Northern Virginia Counseling Group, ncgCare and its network of providers serve thousands of children, adults and families annually with mental health services, foster care and outpatient services through its family of brands. About 1,000 employees provide services through ncgCare brands, including National Counseling Group, Embrace Treatment Foster Care, Avenues to Wellness, Envision Counseling and Turning Point.