Acadia Healthcare Completes Previously Announced Purchase of Partnerships in Care for Approximately $662 Million
July 02 2014 - 7:00AM
Business Wire
Increases Guidance for 2014 Adjusted
Earnings to a Range of $1.44 to 1.46 per Diluted Share Including
Expected Transaction Accretion of $0.17 to $0.18 per Diluted
Share
Acadia Healthcare Company, Inc. (NASDAQ: ACHC) announced that
yesterday it completed the previously announced acquisition of
Partnerships in Care (PiC) for approximately $662 million in cash.
PiC is the second largest independent provider of inpatient
behavioral healthcare services in the United Kingdom, operating 23
inpatient psychiatric facilities with over 1,200 beds. For 2013,
PiC produced revenue of approximately $285 million and adjusted
EBITDA of approximately $75 million. Acadia expects that the
transaction will be accretive to its 2014 earnings in a range of
$0.17 to $0.18 per diluted share, before transaction-related
expenses.
Joey Jacobs, Chairman and Chief Executive Officer of Acadia,
commented, “We are very pleased to enter the U.K. market for
inpatient behavioral care with such a high quality provider and
well-established market leader as PiC. We continue to believe that
favorable market dynamics in the U.K. present a significant
opportunity for accretive growth. With PiC’s strong management
team, supported by Acadia’s experienced organization and access to
capital, we are confident that we are well positioned to achieve
our expectations for growth in the U.K., both organically and
through additional acquisitions.”
The purchase was financed through a combination of equity and
long-term debt. On June 17, 2014, Acadia closed an underwritten
public offering of its common stock, which provided net proceeds to
the Company of approximately $374 million. On July 1, 2014, Acadia
closed a private offering of $300 million in aggregate principal
amount of its 5.125% senior unsecured notes due 2022 pursuant to an
exemption from the registration requirements of the Securities Act
of 1933, as amended.
Brent Turner, President of Acadia, added, “As demonstrated by
the successful completion of these offerings, Acadia’s long-term
growth continues to be supported by its access to capital. While we
are focused on the seamless integration of PiC into Acadia’s
operations, we continue to evaluate additional opportunities in the
U.S and U.K. to expand through acquisition. We believe we have the
financial flexibility and strength to finance additional
transactions. We expect our net cash flow from operations will be
strengthened by increased margins and a lower consolidated income
tax rate resulting from the integration of PiC’s operations into
Acadia’s. We also have approximately $175 million in availability
under our revolving credit facility.”
Based primarily on the impact of the PiC acquisition, Acadia
today raised its guidance for 2014 adjusted earnings per diluted
share to a range of $1.44 to $1.46. The Company’s guidance does not
include the impact of any future acquisitions or
transaction-related expenses.
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, without limitation,
(i) Acadia’s ability to complete acquisitions and successfully
integrate the operations of acquired facilities, including the PiC
facilities; (ii) Acadia’s ability to add beds, expand services,
enhance marketing programs and improve efficiencies at its
facilities; (iii) potential reductions in payments received by
Acadia from the government and third-party payors; (iv) the risk
that Acadia may not generate sufficient cash from operations to
service its debt and meet its working capital and capital
expenditure requirements; and (v) potential operating difficulties,
client preferences, changes in competition and general economic or
industry conditions that may prevent Acadia from realizing the
expected benefits of its business strategy. These factors and
others are more fully described in Acadia’s periodic reports and
other filings with the SEC.
About Acadia
Acadia is a provider of inpatient behavioral healthcare
services. Acadia operates a network of 75 behavioral healthcare
facilities with more than 5,500 licensed beds in 24 states, the
United Kingdom and Puerto Rico. Acadia provides 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.
Acadia Healthcare Company, Inc.Brent Turner,
615-861-6000President
Acadia Healthcare (NASDAQ:ACHC)
Historical Stock Chart
From Jun 2024 to Jul 2024
Acadia Healthcare (NASDAQ:ACHC)
Historical Stock Chart
From Jul 2023 to Jul 2024