Acadia Healthcare To Acquire Partnerships In Care For About $660 Mln

(RTTNews) - Acadia Healthcare Company, Inc. (ACHC) has agreed to acquire Partnerships in Care or PiC for about $660 million in cash.

PiC is the second largest independent provider of inpatient behavioral healthcare services in the UK, operating 23 inpatient psychiatric facilities with more than 1,200 beds. PiC produced revenue of around $285 million and adjusted EBITDA of some $75 million in 2013.

Acadia has received a commitment from Bank of America Merrill Lynch regarding financing of the transaction. Acadia expected to seek a combination of equity and long-term debt financing in lieu of a portion or all of the drawings under the bridge loans available in the committed financing. Acadia expects to close the deal on July 1, 2014.

Assuming the transaction is completed as planned on July 1st, the company expects the combined benefits of increased adjusted EBITDA and a reduced income tax rate to produce earnings accretion of about $0.17 - $0.20 a share for the second half of 2014 and $0.40 - $0.46 a share for 2015. These accretion expectations exclude the impact of any future acquisitions beyond the purchase of PiC or any transaction-related expenses.