Sale benefits employee-owners across two New York locations
NEW YORK – December 19, 2022 – Carl Marks Securities LLC, an affiliate of middle market investment bank Carl Marks Advisors, (together “Carl Marks”) today announced that it advised Cornerstone Treatment Facilities Network (“Cornerstone” or the “Company”), an inpatient addiction care company, on the sale of the business to Aurora Health. Financial terms of the private transaction were not disclosed.
Founded in 1936, Cornerstone is an employee-owned addiction care provider with locations in Fresh Meadows, Queens and in Rhinebeck, New York in the Hudson Valley. A state-regulated and licensed provider, Cornerstone specializes in medically supervised inpatient drug and alcohol withdrawal and stabilization services as well as medically supervised inpatient rehabilitation services.
“This successful sale transaction was a long time coming, but the Carl Marks team never once left our side,” said Tom Puzo, CEO of Cornerstone. “They gave us their full attention and support when the sale process was disrupted by the pandemic and then re-started and kept the best interests of our employee owners in the ESOP at heart. Thanks to their hard work and sage advice, we have now seen the best possible outcome for all the stakeholders.”
“This was an extensive and exhaustive sale process that had more twists and turns than almost any other deal in my career,” said Mark Claster, President of Carl Marks Securities. “We first went to market in spring 2019 and continued working with management and interested buyers through the height of the pandemic, and through many trials and tribulations at a challenging time for all healthcare providers. We are gratified to complete this successful transaction.”
Carl Marks previous experience in addiction and behavioral healthcare services includes the financial restructuring of American Addiction Centers and positioning that company for long-term growth with a new board of directors.
“Cornerstone engaged us because of our extensive experience in healthcare,” said Warren Feder, Principal at Carl Marks Securities. “But they retained us through an unusually long and complex engagement because they knew we would stick with them through thick and thin. From day one, we believed Cornerstone is a best-in-class operation, and that belief was proven out by the patience and integrity of the management team.”
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