Final bids for Discovery House Group Inc. are due next week, following an auction process for the addiction treatment center operator, which is being run by Greene Holcomb & Fisher LLC, sources told The Deal’s Laura Cooper. Providence, R.I.-based Discovery House has 18 facilities across Rhode Island, Pennsylvania, Maine and Utah. The company has Ebitda of around $12 million and could attract a multiple of between 8 and 10 times in a sale, according to one banker. Both private equity sponsors and strategic buyers are expected to be interested in the company, according to one of the bankers. Likely strategic buyers include Universal Health Services Inc. (UHS) or Acadia Healthcare Co. (ACHC), which bought Bain Capital-backed CRC Health Group Inc. in October for $1.18 billion. Discovery House provides medication assisted treatment to those battling drug addiction.
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