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June 15, 2007
LLR Partners leads a $53 Million Equity Investment in Community Education Centers
Business Wire (press release) - San Francisco,CA,USA
June 13, 2007
LLR Partners leads a $53 Million Equity Investment in Community Education Centers
PHILADELPHIA--(BUSINESS WIRE)--LLR Partners Inc. (³LLR²) and Primus Capital Funds (³Primus²) announced the completion of a $53 million equity investment in Community Education Centers, Inc. (³CEC² or the ³Company²), one of the largest providers of treatment, education and reentry services for adult correctional populations. This investment will allow CEC to complete the acquisition of CiviGenics, Inc. ("CiviGenics"), a correctional services company providing offender treatment and jail management services, and finance the combined company¹s expansion plans.
CEC specializes in providing extensive substance abuse counseling and life skills training to adult offenders who are nearing the end of their incarceration or are currently active in work release programs. CEC offers secure, standardized solutions to government agencies beset with overcrowded public facilities and burgeoning prison populations. The Company differentiates itself in this highly fragmented industry by the superior quality of its proprietary treatment and education programs that help individuals successfully re-enter society with the necessary life skills to remain out of prison. CEC has conducted studies that have shown the re-arrest rates among individuals who have completed CEC¹s programs are 50 percent less than industry averages.
CiviGenics, the largest in-prison treatment provider in the U.S., offers a wide variety of treatment programs, including work release and employment preparation, substance abuse therapies and related rehabilitative programs, all of which complement and enhance CEC¹s service platform. CiviGenics currently operates over 100 treatment programs in more than 19 states. Like CEC, CiviGenics serves various government entities, including state departments of corrections, counties, parole/probation boards, drug courts, community correction boards and the Federal Bureau of Prisons.
The combined company will become the nation¹s largest provider of offender re-entry services with a staff of more than 3,500, annual revenues in excess of $200 million and will operate 97 facilities in 22 states, which include reentry centers, in-prison treatment programs, and jail management contracts. The company will be headquartered in New Jersey and have an estimated 20,000 individuals in its programs and facilities. CiviGenics will continue to operate as a wholly owned subsidiary of CEC.
John Clancy, President and CEO of CEC, said, ³We are excited to partner with LLR and Primus as CEC enters its next phase of growth. Their expertise and experience in working with growth businesses will be invaluable as we integrate the CiviGenics acquisition and grow the combined company.²
³The combination of CEC and CiviGenics creates a company with the most diversified and unique service offerings in the corrections industry,² said Seth Lehr, a partner at LLR. ³John Clancy and his management team have a stellar reputation in the corrections industry, and we believe this is a great opportunity to partner with them as they expand their national footprint and provide results-driven solutions to a growing public problem.²
About Community Education Centers, Inc. (CEC)
Community Education Centers, Inc., located in Roseland, New Jersey, is the leading provider of rehabilitative and reentry services to the criminal justice system in America. CEC owns and operates residential reentry centers and day reporting/outpatient programs and provides a full range of therapeutic residential and non-residential correctional services with an empirically documented record of reducing recidivism. For more information about CEC, please visit www.cecintl.com.
About CiviGenics, Inc. (CiviGenics)
CiviGenics, Inc., headquartered in Marlborough, Massachusetts, is a national management services company. Assembled under its corporate banner are experts in in-prison treatment, community corrections, and jail management services. Founded in 1995, CiviGenics is the second-largest privately held corrections operator, and the largest provider of correctional treatment programs in the United States. For more information about CiviGenics, please visit www.civigenics.com.
About LLR Partners Inc. (LLR)
LLR Partners Inc. is a $620 million private equity firm providing capital to middle market companies with growth potential, proven business models and outstanding management teams. LLR makes investments of $10 million to $50 million in a broad range of industries, with an emphasis on business services, healthcare, financial services and information technology. Based in the Philadelphia area, LLR seeks to create value through a variety of transactions, including buyouts, recapitalizations and expansion capital investments. For more information about LLR, please visit www.llrpartners.com.
About Primus Capital Funds (Primus)
Founded in 1983, Primus is a private equity firm established to invest in growth capital opportunities, recapitalizations and management-led buyouts. Primus typically invests between $10 million and $25 million per transaction targeting companies with proven business models and superior growth prospects. Primus makes both control and minority investments. The firm is experienced in a number of industries including business services, healthcare, for-profit education and communications. For more information about Primus, please visit www.primuscapital.com.
Contacts
LLR Partners Inc.
Press Contact:
Gregory FCA
Jessica Hirsch, 610-642-8253 ext. 132
Mobile: 732-995-5366
Jessica@GregoryFCA.com
Posted by lois at June 15, 2007 10:02 AM