Owakihi, Inc. Acquired by Beacon Specialized Living Services, Inc.
Beacon Specialized Living Services, Inc. (“Beacon”), a portfolio company of Pharos Capital Group, announced today it has acquired Owakihi, Inc., (“Owakihi” or “the Company”). Founded in 1978, Owakihi is a leading Minnesota provider of home and community-based support services to individuals with intellectual and developmental disabilities (I/DD) and mental health needs, focusing on personalized care. Beacon is Michigan’s largest for-profit provider of residential healthcare services to individuals with I/DD, mental health and substance abuse disorders. Terms of the transaction were not disclosed.
The Braff Group served as exclusive merger and acquisition advisor for Owakihi, Inc.
Beacon Chief Executive Officer Darren Hodgdon noted, “Beacon is developing multiple lines of mental health services for individuals with extreme behaviors and complex needs. Owakihi serves like-individuals with different delivery models that will further broaden our current capabilities. Their highly-trained and qualified staff, and emphasis on “Person-Centered Planning,” optimizes successful outcomes and will help fuel our platform’s growth as we continue to fill critical gaps in the healthcare system that drive excessive utilization.”
Headquartered in Saint Paul, MN, Owakihi serves over 200 individuals across 14 sites in the seven counties surrounding Minneapolis and Saint Paul. Owakihi’s residential options encompass group homes, intermediate care facilities, crisis care homes, and individual housing within apartment complexes. The Company’s services are long-term in nature and include mentorship, training, socialization, medication management, and other relevant treatment.
“The acquisition of Owakihi reinforces Beacon’s mission to create home and community-based supports for individuals with extreme behaviors and complex needs. We anticipate a long run of interest in this space, especially as the mental health crisis continues,” commented Nancy Weisling, The Braff Group Managing Director who headed up the deal team representing Owakihi.
Jim Phillips, Partner at Pharos Capital Group, said, “With this add-on, Beacon is creating a multi-state, regional platform to address I/DD and severe mental health. The need for such residential services is acute and Beacon is well-positioned to work with private, county and state agencies and case managers to bring quality long-term solutions to this deserving population.”
Sandra Kindem, Executive Director of Owakihi, added, “I am delighted to be partnering with Beacon. They truly understand our business and our commitment to the model of person-centered care, which empowers our clients to identify and reach life goals and live as independently as possible. Beacon and Pharos’s capital and operational resources will prove invaluable as we seek to expand the level of care we can offer in our communities.”