Report: Investment Firm Considers Sale of Newport Academy

Investment firm Carlyle Group is mulling a sale of Newport Academy, the operator of a network of programs for teens with mental health disorders, according to a report on Tuesday from the trade publication PE Hub.

Sources tell PE Hub that a deal could fetch more than $1 billion. Jefferies Group is serving as a sell-side financial advisor. Sources tell PE Hub that Newport Academy’s EBITDA currently “lies north of $80 million,” up from $20 million in EBITDA generated when Carlyle invested in the business in 2016.

Founded in 2009 by Jamison Monroe Jr., Newport Academy offers residential programs for teens and young adults, as well as outpatient programming, day schools, attachment-based therapy and telehealth services. The organization treats mental health issues, eating disorders and substance use disorders, and has locations in northern and southern California, Washington, Connecticut and Virginia.

Last week, Newport Academy announced the opening of new youth mental health programs in Los Angeles.