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Acadia Healthcare (ACHC) Announces Three Acquisitions; Nudges FY15 EPS Outlook Higher

June 2, 2015 7:53 AM EDT

Acadia Healthcare (NASDAQ: ACHC) announced three acquisitions – two in the United Kingdom and one in the United States - which include 17 inpatient behavioral health facilities with approximately 500 beds.

Acadia purchased the behavioral health operations of Care UK, which include 15 inpatient facilities with approximately 300 beds, providing behavioral health services to children, adolescents and adults. The Company also completed the purchase of another inpatient behavioral health facility, with 42 beds, from Choice Lifestyles in the U.K. In addition, Acadia announced an asset purchase agreement with Belmont Behavioral Health, which is part of the not-for-profit Einstein Healthcare Network. The assets to be purchased include an inpatient behavioral health facility with 147 beds serving the greater Philadelphia, Pennsylvania, market. Aggregate cash consideration for these facilities is approximately $145 million, the operations of which produced total revenue of approximately $82 million in 2014. Acadia completed the two acquisitions in the U.K. on June 1, 2015, and expects to complete the Belmont purchase on July 1, 2015.

Joey Jacobs, Chairman and Chief Executive Officer of Acadia, said, “We are pleased to announce these transactions and to welcome these outstanding healthcare teams to Acadia. These acquisitions are consistent with our growth strategies and reflect growing demand for behavioral health services in both the U.S. and the U.K. The capital we raised from the May equity offering is being put to use quickly and effectively, as we anticipated. The Company remains well positioned to fund its growth strategies through its continuing generation of substantial cash flow from operations and full availability under its $300 million revolving credit facility.

“As a result of the transactions, all of which are expected to be accretive to our financial results, we now operate 45 inpatient facilities with approximately 1,800 beds in the U.K. We continue to have robust opportunities to expand further in this market through organic growth and acquisition. Our Philadelphia acquisition is also representative of additional opportunities we are evaluating in our domestic pipeline of potential acquisitions, including more transactions with non-profit healthcare providers.”

Acadia also today updated its 2015 financial guidance to reflect these three acquisitions, as well as the Company’s public offering of 5,175,000 shares of common stock completed May 11, 2015. Acadia’s guidance for 2015 adjusted earnings per diluted share is in a range of $2.12 to $2.15, compared with the previous range of $2.11 to $2.15. The Company’s guidance does not include the impact of any other future acquisitions or transaction-related expenses.

*** The Street sees FY15 EPS of $2.14.



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