We’ve seen a lot of companies divesting non-core assets lately. Sometimes the reason is regulatory approval purposes, and other times the company simply wants to focus exclusively on a different business unit. In the latter case, Cambian Group plc (LSE: CMBN) is looking to expand its children services unit.
Cambian Group provides specialist behavioral health services to adults and children in the United Kingdom. In December it announced it is divesting its adult services division, Cambian Adult Services Group. The division, which provides care to adults with mental health disorders, intellectual disabilities, autism, personality disorder and acquired brain conditions, consists of 81 behavioral facilities with 1,193 beds.
The buyer, Universal Health Services Inc. (NYSE: UHS), owns and operates acute care hospitals, behavioral health centers, surgical hospitals, ambulatory surgery centers and radiation oncology centers, is spending $479 million (£377 million), which works out to roughly $402,000 per bed and 10.8x EBITDA.
The acquired division will be integrated into Cygnet Health Care Limited, which Universal Health acquired in September 2014 for $335 million.
Following the transaction, UHS will have a total of 102 facilities with approximately 2,250 beds in the U.K. This is the 39th acquisition in the Behavioral Health Care sector in 2016, and is UHS’ third acquisition of the year.