Acadia Healthcare Company, Inc. (NASDAQ: ACHC) announced last week it purchased Adventist Health Vallejo from Adventist Health for an undisclosed sum. Adventist Health Vallejo is a 61-bed psychiatric hospital that is operated as a service of Adventist Health St. Helena. Its services include short-term psychiatric care for children, adolescents and adults as well as partial hospitalization services for adults who are experiencing psychiatric problems or are dependent on alcohol, drugs or prescription medications. The psychiatric hospital has operated in Vallejo, California for nearly 25 years.
Acadia Healthcare intends to retain current staff and associates and also invest in and expand the facility. The organizations expect to complete the transaction by mid-2021.
Acadia Healthcare operates a network of 227 behavioral healthcare facilities with approximately 9,900 beds in 40 states and Puerto Rico, and it has largely built that network through M&A of both smaller, behavioral health clinics and behavioral health hospitals. Its most recent deal was back in 2019, according to search results in our Healthcare Deals Database. The company purchased Bradford Recovery Center, a 46-bed inpatient treatment center in northern Pennsylvania treating individuals with addiction and co-occurring disorders, for $4.5 million.
In late December, Acadia Healthcare sold its U.K. behavioral health care operations, known as Priory Group, to Waterland Private Equity, an independent private equity investment group based in The Netherlands. The firm is paying approximately GBP 1.78 billion, or U.S. $2.47 billion, based on the exchange rate at the time of the deal. The business has 361 behavioral health facilities with 8,700 beds across the U.K. In 2019, the Priory Group generated $1.1 billion in revenue and is expected to have annualized 2020 EBITDA of $160 million. The transaction was expected to close in January, but there has been no official word yet.
