Champion Healthcare Corp., a small but rapidly growing hospital chain, has agreed to buy Psychiatric Healthcare Corp., a Birmingham, Ala.-based owner of two psychiatric hospitals.
The deal is the second pending acquisition for Champion, which is also buying AmeriHealth, an Atlanta-based hospital chain. The AmeriHealth deal would make Champion a publicly traded company with about $150 million in annual revenues. The Psychiatric Healthcare hospitals would add another $30 million in annual revenues.
Champion is assuming Psychiatric Healthcare's debt and issuing equity and notes to purchase the firm. The deal is valued at about $25 million, said Michael Foster, board chairman of Psychiatric Healthcare. It's expected to be completed by Oct. 31.
Psychiatric Healthcare is a privately held firm that owns 149-bed Lakeland Regional Hospital in Springfield, Mo., and 70-bed Crossroads Regional Hospital in Alexandria, La.
Charles Miller, chief executive officer of Houston-based Champion, said the two psychiatric hospitals are dominant in their markets and "will be instrumental in helping Champion grow selectively in the mental health services sector."
The AmeriHealth deal is set to be completed Nov. 3, although the company is battling its largest shareholder in a proxy fight.