The former management team at Psychiatric Solutions is building another behavioral-health company to critical mass, agreeing to combine their Acadia Healthcare Co. with PHC, the parent company of Pioneer Behavioral Health, according to a PHC news release.
Behavioral-health firms Acadia, PHC uniting
Shareholders of Franklin, Tenn.-based Acadia, which is controlled by private-equity firm Waud Capital Partners, would own 77.5% of the combined company, with PHC shareholders owning the remaining 22.5%, according to the release. Acadia brings 19 facilities in 13 states with annual revenue of approximately $260 million, according to the release.
PHC, Peabody, Mass., owns five inpatient facilities in four states and has agreed to acquire a sixth facility, 53-bed Meadow Wood Behavioral Health System, New Castle, Del., from Universal Health Services, King of Prussia, Pa. Universal acquired Meadow Wood in the Psychiatric Solutions deal, but it is one of four inpatient facilities that the Federal Trade Commission required Universal to divest as part of the FTC's approval of the deal last year. PHC also sells referral services to employee assistance programs and critical incident services.
The combined company will do business as Pioneer Behavioral Health and be based in Franklin, according to the release. Joey Jacobs, chairman and CEO of Acadia, will take those titles at the helm of Pioneer; Jacobs was president, chairman and CEO of Psychiatric Solutions. Bruce Shear, PHC's president and CEO, will become executive vice chairman and a director of Pioneer. For the nine months ended March 31, PHC recorded net income of $1.2 million on net revenue of $45.2 million, according to a securities filing.
The deal is the second for Acadia since Jacobs and his management team were installed in March.
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