Bloomberg Anywhere Remote Login Bloomberg Terminal Demo Request


Connecting decision makers to a dynamic network of information, people and ideas, Bloomberg quickly and accurately delivers business and financial information, news and insight around the world.


Financial Products

Enterprise Products


Customer Support

  • Americas

    +1 212 318 2000

  • Europe, Middle East, & Africa

    +44 20 7330 7500

  • Asia Pacific

    +65 6212 1000


Industry Products

Media Services

Follow Us

Bloomberg Customers

Universal Health Said Near $2 Billion Acquisition

Universal Health CEO Alan Miller
For Universal Health Services CEO Alan Miller, adding Psychiatric Solutions would more than double the company's psychiatric facilities. Photographer: Daniel Acker/Bloomberg

Universal Health Services Inc., the Pennsylvania-based operator of medical facilities, is nearing an agreement to buy Psychiatric Solutions Inc. for about $2 billion in cash, said people with knowledge of the matter.

Universal Health is offering about $33.50 a share, said one of the people, who spoke on condition of anonymity because the talks are private. A committee of Psychiatric Solutions’s board favors Universal’s bid over a competing one from Bain Capital LLC and may reach an agreement as soon as today, these people said. The board of Psychiatric Solutions hasn’t yet approved a deal and talks may fall apart, one of the people said.

For Universal Health Chief Executive Officer Alan Miller, adding Psychiatric Solutions would more than double the company’s revenue from psychiatric facilities. Universal Health had $1.3 billion of revenue from its behavioral health-care operations in 2009. Psychiatric Solutions had $1.8 billion of revenue for the same period.

Universal Health, based in King of Prussia, Pennsylvania, also operates 25 acute-care hospitals and outpatient centers throughout the U.S., according to the company’s 2009 annual report.

Spokespeople for Franklin, Tennessee-based Psychiatric Solutions, for Universal Health, and Bain declined to comment or couldn’t be reached.

Exploring Sale for Months

Psychiatric Solutions began exploring a sale months ago in the form of a management-led buyout involving Chief Executive Joey Jacobs and Bain, said the people with knowledge of the talks. The board ultimately entertained offers from rival medical services companies as well, these people said. The board’s committee is getting advice from Goldman Sachs Group Inc. and Shearman & Sterling LLP.

Psychiatric Solutions rose 63 cents to $32.63 Nasdaq Stock Market trading on May 14. The shares have gained 54 percent so far this year.

Universal Health advanced $1.34 to $39.04 in New York Stock Exchange composite trading. The shares are 28 percent higher this year.

Please upgrade your Browser

Your browser is out-of-date. Please download one of these excellent browsers:

Chrome, Firefox, Safari, Opera or Internet Explorer.