Odyssey Behavioral Healthcare, a provider of mental health, addiction and eating disorder treatment services, is gearing up to explore a sale, five sources familiar with the situation said.

The Brentwood, Tennessee-based company has retained Moelis as adviser, according to three of the sources. The process, which is expected to target financial sponsors, has not launched yet, two of the sources said.

Backed by private equity firm The Carlyle Group [NASDAQ:CG], Odyssey generates around USD 55m in EBITDA, three of the sources said. The company is expected to command a double-digit multiple of EBITDA, four of the sources agreed.

This news service reported earlier this week that Caravel Autism Health sold to private equity firm GTCR for a multiple of 15x-16x EBITDA. The deal reflects a rebounding behavioral health market. The market had struggled in the last few years due, in part, to a shortage of therapists, one of the sources noted.

Founded in 2015, Odyssey operates facilities and provides affiliated outpatient services in more than 50 treatment locations across 10 states, according to its website.

Carlyle acquired the business in December 2018 for approximately USD 200m, according to a PE Hub report that month.

The company has grown organically and through acquisitions. In 2020, it acquired Clearview Treatment Programs. The following year, it purchased Shoreline Center for Eating Disorder Treatment.

Odyssey and Carlyle did not respond to requests for comment. Moelis declined to comment.