Acadia Healthcare Acquires Adventist Health Vallejo
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... Read More »
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 »
Acadia Healthcare Exits the U.K.
After a brief suspension in the sale process, Acadia Healthcare Company, Inc. (NASDAQ: ACHC) has finally found a buyer for its U.K. behavioral health care operations, known as Priory Group. Acadia first began exploring a divestment of Priory Group in early 2020, but talks were suspended when the Covid-19 pandemic hit. In September, Acadia released a statement that said it was resuming the sale process, and the company finally managed to close the deal on December 30. The buyer is Waterland Private Equity, an independent private equity investment group based in The Netherlands. The firm is paying approximately GBP 1.78 billion, or US $2.47 billion, based on the current exchange rate, for... Read More »
BayMark Health Announces Three Deals
BayMark Health Services announced a trio of deals last week alone, doubling its transaction count for 2020, based on results from Healthcare Deals Database. With the backing of private equity firm Webster Equity Partners, the nationwide behavioral health provider acquired three new providers across three states for an undisclosed sum. For the first deal, BayMark Health acquired Portland, Maine- based Liberty Bay Recovery Center, a residential treatment facility (59 beds) that offers treatment for a variety of addictions including not only opioids but also alcohol, cocaine, methamphetamine, prescription drugs and other substances. It provides multiple levels of care including residential,... Read More »
Behavioral Health Care M&A Survived the Summer
The Behavioral Health Care M&A market and industry have experienced one effect from COVID-19 that most other healthcare services have not and that is an increase in patients seeking treatment. The pandemic’s impact on jobs, social interactions and myriad other parts of daily life has caused a great degree of psychological stress on individuals. Both Acadia Healthcare Company (NASDAQ: ACHC) and Universal Health Services (NYSE: UHS) noted increased demand for services in the second quarter of 2020 and are cautiously optimistic about patient volumes in the second half of this year. Behavioral Health Care M&A activity didn’t stop completely, either. In... Read More »