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Acadia Healthcare (ACHC) To Buy 8 Inpatient Psychiatric Facilities For $258M

 November 27, 2012 08:06 AM


(By Balaseshan) Acadia Healthcare Co. Inc. (NASDAQ: ACHC) said it has agreed under two deals to purchase an aggregate of eight inpatient psychiatric facilities with about 600 beds for $258 million in cash.

Acadia is evaluating alternatives to finance these transactions. While the final funding mix is yet to be finalized, management expects that these transactions will be accretive to its 2013 financial results.

The company has agreed to purchase Behavioral Centers of America LLC, which is headquartered in Nashville, TN, for total consideration of $145 million in cash. BCA operates three inpatient psychiatric facilities and one psychiatric hospital within a hospital.

The facilities of BCA are located in Ohio, Michigan and Texas and have 278 licensed inpatient beds, over 90% of which are acute inpatient beds. The facilities produced revenues of $60.5 million for the twelve months ended September 30, 2012. Acadia expects to complete the transaction in late December 2012.

The company also has agreed to acquire AmiCare Behavioral Centers, headquartered in Fayetteville, AR, for total consideration of $113 million in cash. AmiCare operates four inpatient psychiatric facilities in Arkansas that have 330 licensed inpatient beds, nearly 70% of which are acute inpatient beds.

The facilities of AmiCare produced revenues of $61.7 million for the twelve months ended September 30, 2012. Acadia expects to complete the transaction, which is subject to customary closing conditions, in late December 2012.

"In addition to providing Acadia our first entry into Ohio, which is our 21st state, these transactions will significantly expand our beds in operation. We continue to consider additional acquisition opportunities in the fragmented inpatient behavioral health industry," said Joey Jacobs, Chairman and Chief Executive Officer of Acadia.

Acadia is a provider of inpatient behavioral health care services in the United States. Acadia operates a network of 34 behavioral health facilities with about 2,500 licensed beds in 20 states.

ACHC closed Monday's regular session up 1.52% at $22.65. The stock has been trading between $5.43 and $24.83 for the past 52 weeks.

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