Medical Properties Trust Buys Behavioral Health Portfolio

Medical Properties Trust Buys Behavioral Health Portfolio

After Acadia Healthcare Company, Inc. (NASDAQ: ACHC) divested Priory Group, its U.K. behavioral health care business, for $1.47 billion, Priory Group is doing some unloading of its own. Now backed by Waterland Private Equity, Priory Group is selling a portfolio of approximately 40 select behavioral health facilities located in the United Kingdom to Medical Properties Trust, Inc. (NYSE: MPW). The Birmingham, Alabama-based REIT will pay approximately GBP 800 million, or $1.087 billion, plus customary stamp duty tax and other transaction costs.  The properties will be subject to long-term sale-leaseback agreements with Priory, which are expected to provide MPT a GAAP-basis yield of 8.6% and... Read More »
Stat of the Week: Behavioral Health Care, +12%

Stat of the Week: Behavioral Health Care, +12%

Mergers and acquisitions in the Behavioral Health Care sector have been on a tear in recent years, relatively speaking. The caveat is that many deals are done locally, between private or not-for-profit organizations, and most are not publicly announced. Private equity firms have been piling into this space, and they aren’t known for a lot of transparency around portfolio companies, unless they’re touting their platform-building prowess. Through mid-September, M&A activity in this sector stands at 37 deals, up 12% compared with the same period in 2016 (33 deals then). Dollar values haven’t kept up the pace, however. Just $554 million in financing has been publicly... Read More »
PE Firms Target Behavioral Health, Eating Disorder Programs

PE Firms Target Behavioral Health, Eating Disorder Programs

Behavioral health care has never been a particularly active sector, but deal volume has increased year-over-year between 2010 and 2016, growing 412% in that time. And there’s a good chance that 2017 will continue this trend. Through August 30, 32 behavioral health care deals have been announced, up 7% compared with the same period last year. So what else is going on this year? So far, we haven’t seen anything close to a mega-deal. The largest price tag this year was Care Capital Properties’ (NYSE: CCP) $380 million acquisition of the real estate assets of six behavioral health hospitals from Signature Healthcare Services LLC, dba Aurora Behavioral Health. This was the second... Read More »

Acadia Healthcare Tidies Up Its UK Portfolio

With three announced acquisitions on the books in 2016, Acadia Healthcare Company (NASDAQ: ACHC) was forced to sell some of its portfolio, for a change. The Franklin, Tennessee-based behavioral health company has been quite active over in the United Kingdom since 2014, when it acquired Partnerships in Care (PiC) for $662 million.At the time, PiC was the second largest independent provider of behavioral healthcare services in the United Kingdom, operating 23 inpatient psychiatric facilities with more than 1,200 beds. The sale worked out to 2.3x price-to-revenue and 8.8x price-to-EBITDA. In 2015, Acadia added Care UK, Choice Lifestyles and The Manor Clinic. Care UK operates 15 inpatient... Read More »