John McRoberts, Chief Executive Officer and Chairman of MedEquities, noted, "We have been looking to expand into the behavioral health space. With this transaction, we have identified the right operator with whom to partner and the right facilities. We have known the AAC Holdings management team for a number of years and were attracted by their leadership position in the industry. Their integrated-care approach with their larger residential facilities makes the intensive outpatient and sober living facilities vital components in the continuum of care, allowing clients to step down as their treatment progresses. Our transaction provides AAC with capital to fund current and future growth opportunities."