Greenbrook TMS Inc., which provides transcranial magnetic stimulation (TMS) therapy in the United States plans to acquire Check Five LLC dba Success TMS. The acquisition will add 45 additional active TMS centers in six states to Greenbrook’s existing service delivery platform in 16 states. Success TMS’s Chief Executive Officer, Benjamin Klein, is expected to join Greenbrook as chief operating officer.
Following completion of the acquisition, Greenbrook’s TMS center network will grow to 191 active TMS centers across the United States. Since founding its first TMS center in Florida in 2018, Success TMS has grown to 45 active locations throughout Florida, Pennsylvania, Illinois, New Jersey, Nevada, and Wisconsin. Greenbrook TMS has locations in Alaska, California, Connecticut, the District of Columbia, Delaware, Florida, Illinois, Maryland, Michigan, Missouri, North Carolina, Ohio, Oregon, South Carolina, Texas, and Virginia. Greenbrook anticipates that the acquisition will allow it to enter new states more easily by removing the need to establish new contractual relationships with payors in the regions in which Success TMS currently operates.
Greenbrook TMS had 2021 revenue of $52 million. It expects that the acquisition will add more than $30 million in revenue. Purchase price consideration for the acquisition will be payable entirely in common shares of Greenbrook. This is intended to align the interests of the Success TMS team with those of Greenbrook and promote the shared goal of building value together under the Greenbrook brand. Pursuant to the Purchase Agreement, Greenbrook, through its wholly-owned U.S. subsidiary, TMS NeuroHealth Centers Inc., will indirectly acquire all of the issued and outstanding equity interests in Success TMS from its parent company, Success Behavioral Holdings LLC (“Success Behavioral”). As consideration for the purchase of Success TMS, its direct and indirect owners, including Benjamin Klein and Batya Klein (collectively, the “Seller Parties”) will receive, in the aggregate, approximately 11,867,923 common shares of Greenbrook.
Operating through 148 company-operated treatment centers, Greenbrook is a leading provider of TMS therapy, an FDA-cleared, non-invasive therapy for the treatment of Major Depressive Disorder and other mental health disorders in the United States. TMS therapy provides local electromagnetic stimulation to specific brain regions known to be directly associated with mood regulation. Greenbrook has provided more than 840,000 TMS treatments to over 24,000 consumers with depression.
This was reported by Greenbrook TMS Inc. on May 16, 2022, at https://www.businesswire.com/news/home/20220516005387/en/Greenbrook-TMS-To-Acquire-Success-TM (accessed May 20, 2022).
Contact information: Glen Akselrod, Investor Relations, Greenbrook TMS Inc., 890 Yonge Street, 7th Floor, Toronto, Ontario M4W 3P4, Canada; 855-797-4867; Email: investorrelations@greenbrooktms.com; Website: https://www.greenbrooktms.com/
