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Civitas Solutions Expands Adult Day Health (ADH) Services in the State of Maryland with Acquisition of Six Centers

BOSTON--(BUSINESS WIRE)--

Civitas Solutions, Inc. (CIVI) today announced that it has expanded its Adult Day Health (“ADH”) services in the state of Maryland with the acquisition of Rainbow ADH and its six centers.

Each of the six centers acquired provide person-centered day services to elders, including medication management and nutritional and nursing support. The centers, located in Baltimore, Howard and Montgomery counties, generated revenues of approximately $18 million for the 12-month period prior to the acquisition. With the addition of Rainbow’s operations, Civitas now operates 11 centers in Maryland with annual revenues of approximately $30 million.

The Maryland ADH market is approximately $150 million spread across about 90 centers. Like the national ADH market, the market in Maryland is highly fragmented with the majority of ADH providers operating single-center businesses.

“Rainbow ADH is a great complement to our existing ADH operations in Maryland,” said Bruce Nardella, president and CEO of Civitas Solutions. “We are thrilled to welcome the management and caregivers of the Rainbow centers, as well as the individuals they support, to Civitas.

“We are pleased with the progress we have made in establishing our Company as the leading provider of ADH services—first in Massachusetts and now in Maryland. We look forward to continuing our expansion of this relatively new service line, in new and existing markets, through attractive acquisitions and de novo new starts. We remain excited about the future of our ADH business and its potential to meaningfully contribute to our Company’s mission, growth and development in the years ahead.”

Civitas entered the $6.9 billion ADH market with its September 2014 acquisition of the Mass Adult Day Health Alliance. Including the Rainbow acquisition, Civitas operates 23 centers in Massachusetts and Maryland, serving approximately 4,200 elders. In addition, a 24th center was recently constructed in the city of Malden, Massachusetts and is slated to open this spring pending licensure approval.

About Civitas

Civitas Solutions, Inc. is the leading national provider of home- and community-based health and human services to must-serve individuals with intellectual, developmental, physical or behavioral disabilities and other special needs. Since our founding in 1980, we have evolved from a single residential program to a diversified national network offering an array of quality services in 35 states.

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