Acadia Healthcare to Buy CRC Health in $1.18 Billion Deal

Acadia Healthcare Company Inc. said it will acquire closely held CRC Health Group Inc. for $1.18 billion, expanding its in-patient mental health and substance abuse treatment facilities.

CRC Health’s owners will receive about 6.3 million Acadia shares in the deal, Franklin, Tennessee-based Acadia said today in a statement. Acadia also will assume CRC Health’s debt.

The acquisition is Acadia’s fifth in the past 12 months, adding 27 facilities and more than 1,500 beds, the company said.

“We continue to evaluate potential acquisitions in the highly fragmented behavioral health-care markets in the U.S. and the U.K., as well as to add new beds in existing facilities,” Joey Jacobs, Acadia’s chairman and chief executive officer, said in the statement.

CRC Health, based in Cupertino, California, is a substance-abuse treatment provider that has about 120 facilities and sees about 40,000 patients daily, according to the statement. CRC is expected to generate $450 million in revenue this year, and adjusted earnings of $115 million, Acadia said.

Acadia operates 76 facilities with about 5,800 licensed beds in 24 states, Puerto Rico and the U.K., the company said.

Acadia shares gained 2.1 percent to $54 in extended trading at 4:22 p.m. in New York. The stock has increased 34 percent in the past 12 months.

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