GreeneStone Healthcare, provider of healthcare services in Ontario and specializing in addiction treatment, eating disorders, and preventative healthcare for company executives, has some big but well-defined plans for growth over the next couple of years. The company sees a huge and underserved market for the treatment of addiction and mental health issues, both in Canada and the U.S., and plans to greatly expand its addiction treatment facilities. GreeneStone’s growth plans are centered around a “build and buy” strategy, ultimately increasing its capacity by nearly a factor of ten, from 36 beds to over 300, resulting in a revenue jump from $7 million to nearly $90 million.
The company has already identified several acquisition targets in the U.S. and Canada, including some underperforming operations as well as facilities that could themselves be expanded. Through acquisition, GreeneStone expects to widen the company’s breadth of services, which currently focus on addiction, eating disorders, along with endoscopy and other outpatient and aftercare services. GreeneStone has also grown through building, recently converting a resort property into a high-end residential addiction treatment facility in Muskoka, north of Toronto in southeastern Ontario.
GreeneStone currently generates approximately $600 to $1000 per day per bed, and recent M&A activity in the sector has produced valuations for facilities in excess of $1 million per bed. With the known potential for facilities development throughout North America, the opportunity for financial growth on a major scale is clear.
Shawn Leon, GreeneStone CEO, commented on the opportunity: “Typical 300-500 bed players in this space have revenue run rates in excess of $100 million from those operations. We are highly active with our expansion strategy now and expect to be busy for quite some time in order to reach what we consider to be the sweet spot in terms of bed capacity starting at the 300 bed level.”
For additional information, visit the company’s websites at www.GreeneStoneClinic.com and www.GreeneStoneInvestor.com
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