West Palm Beach, Fla.-based Ethema Health Corp. signed a letter of intent Oct. 23 to acquire multiple assets and separate entities of Louisa, Ky.-based Addiction Recovery Care, a move expected to generate more than $100 million in revenue in 2026, according to an Ethema news release.
The deal covers ARC’s Kentucky-based inpatient facilities in Inez, Pikeville, Owensboro and Ashland, and outpatient centers in Prestonsburg, Mount Sterling, Louisa, Ashland and Lexington, according to the news release. Ethema will also acquire a psychiatric hospital, pharmacy, medical laboratory and rural health clinic as part of the agreement. Combined, the substance use disorder and psychiatric facilities have capacity for approximately 900 patients.
The acquisition will be executed through a new entity, NewcoARIA, which will also hold Ethema’s current Florida and Kentucky operations. The company said it may pursue an initial public offering for the new platform.
The purchase will be financed through a mix of cash (25%), vendor notes (25%) and equity-linked funding (50%), according to the release.
Ethema CEO Shawn Leon said the transaction will support the creation of a statewide network under the Aria brand. ARC CEO Tim Robinson said the agreement ensures continuity of care and aligns with ARC’s mission.
