Health Care Deal News: Spotlight on Behavioral Health- February 2012
In its first major expansion since merging with PHC, Inc. in March 2011, Acadia Healthcare Company (NASDAQ: ACHC) is acquiring a portfolio of three inpatient psychiatric hospitals with 168 beds from Haven Behavioral Healthcare Holdings for $91.0 million in cash. Valued at 2.1x revenue, this deal gives ACHC hospitals in Tucson, Arizona; Ada, Oklahoma; and Wichita Falls, Texas. The buyer believes the purchase of inpatient facilities will improve the company’s overall payor mix. The purchase is being funded from a December 2011 equity offering by ACHC and a partial draw on its revolving credit line.
Universal Health Services (NYSE: UHS) is selling 80-bed Montgomery Hospital and 21-bed Red Rock Behavioral Health Hospital, both in the Las Vegas, Nevada market, to Strategic Behavioral Health (SBH) for an undisclosed price. The sale of these hospitals was a condition imposed by the FTC on UHS’s acquisition of Psychiatric Solutions. While SBH typically develops hospitals in attractive markets, it will make purchases opportunistically, as it has done in this case. Based in Memphis, Tennessee, SBH is a Dobbs Management Service portfolio company. SBH worked with Fifth Third Bancorp, First Tennessee Bank and Pinnacle Financial to finance this deal.
Bodha Recovery Residences, a San Francisco-based operator of recovery facilities, acquired Vista House, a “sober home,” or residence that provides transitional recovery services for patients with drug and alcohol dependence. It is located in an upscale West Hollywood neighborhood of Los Angeles. No price was disclosed...Want to read more? Click here for a free trial to The Health Care M&A Monthly and download the current issue today