Acadia Healthcare, Majority Owned by Waud Capital Partners, Completes Merger with PHC, Inc. and Becomes Publicly Traded Company
November 01 2011 - 1:54PM
Business Wire
Waud Capital Partners (“WCP”), a Chicago based middle-market
private equity firm, today announced that Acadia Healthcare
Company, Inc. (“Acadia” or the “Company”), majority owned by WCP,
has completed its merger with PHC, Inc., d/b/a Pioneer Behavioral
Health (AMEX:PHC). As a result of the transaction, Acadia is the
country’s leading publicly traded pure-play provider of inpatient
behavioral health care services, based upon licensed beds. The
Company operates 34 facilities, with approximately 1,950 licensed
beds in 18 states, which would have produced annual revenues of
more than $325 million on a pro forma basis for the twelve months
ending June 30, 2011.
Commenting on the announcement, Joey Jacobs, Chairman and Chief
Executive Officer of Acadia, said, “The completion of this merger
brings a great team of dedicated and skilled professionals to
Acadia and an outstanding portfolio of facilities and services. In
addition, by improving the Company’s access to capital as a public
company, the transaction enhances our ability to drive Acadia’s
growth through additional acquisitions in the highly fragmented
behavioral health care services industry. Based on our management
team’s significant industry experience and expertise, we are
confident of our ability to complete and successfully integrate
such transactions, as well as to produce increased organic growth,
productivity and efficiency in the facilities we operate.”
Following the merger, Acadia shareholders own approximately
77.5% of the equity of the combined entity with PHC’s current
shareholders owning the balance. The merged company will be
headquartered in Franklin, TN, and operate as Acadia Healthcare
Company, Inc., while continuing to provide the same high-quality
treatment in the communities each company currently serves. Mr.
Jacobs will serve as CEO of the merged company and as Chairman of
the Board of Directors.
Acadia was formed by WCP in late 2005 to acquire, develop and
operate a national network of behavioral health facilities. The
merger with PHC represents the eighth transaction completed by
Acadia over a six-year period.
Chuck Edwards, Principal of WCP, commented, “This is a very
exciting time for Acadia. Under the continued leadership of Joey
Jacobs and the Acadia team, we believe the Company is strongly
positioned for future acquisitions and continued growth.
Congratulations to Joey and the Acadia team on completing the
transaction.”
“Acadia’s continued growth and merger with PHC is another
successful example of our investment strategy. WCP’s defined
investment approach creates industry-leading organizations by
partnering with world-class management teams to build value in our
portfolio companies for our investors,” said Reeve Waud, Managing
Partner of WCP.
Risk Factors
This news release contains forward-looking statements. Generally
words such as “may”, “will”, “should”, “could”, “anticipate”,
“expect”, “intend”, “estimate”, “plan”, “continue”, and “believe”
or the negative of or other variation on these and other similar
expressions identify forward-looking statements. These
forward-looking statements are made only as of the date of this
news release. We do not undertake to update or revise the
forward-looking statements, whether as a result of new information,
future events or otherwise. Forward-looking statements are based on
current expectations and involve risks and uncertainties and our
future results could differ significantly from those expressed or
implied by our forward-looking statements. Factors that may cause
actual results to differ materially include the risk that (i)
payments received from the government and third-party payors may be
reduced; (ii) Acadia may not generate sufficient cash from
operations to service its debt and meet its working capital and
capital expenditure requirements; (iii) the businesses of Acadia
and Pioneer Behavioral Health may not be integrated successfully;
and (iv) Acadia may not be able to identify, finance and integrate
future acquisitions. These factors and others are more fully
described in Acadia’s Registration Statement on Form S-4 and its
periodic reports and other filings with the SEC.
About Acadia Healthcare Company, Inc.
Founded in December 2005, Acadia is a leading provider of
inpatient behavioral health care services. Acadia operates a
network of 34 behavioral health facilities, with approximately
1,950 licensed beds in 18 states. Acadia provides premier
psychiatric and chemical dependency services to its patients in a
variety of settings, including inpatient psychiatric hospitals,
residential treatment centers, outpatient clinics and therapeutic
school-based programs.
For additional information about Acadia, visit the Company’s
website at www.acadiahealthcare.com.
About Waud Capital Partners
Waud Capital Partners is a private equity investment firm
founded in 1993 that partners with exceptional management teams to
invest in middle market growth equity investments, buyouts,
industry consolidations and recapitalizations. The firm seeks to
invest $10 million to $100 million in private companies in the
following four areas: health care services, business and consumer
services, specialty distribution and value-added industrial
businesses. Typically, the companies in which WCP invests have
enterprise values between $30 million and $300 million. The firm
has completed more than 100 acquisitions since its founding and
currently has approximately $1 billion of capital under
management.
For additional information on Waud Capital Partners, visit the
firm’s website at www.waudcapital.com.
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