Acadia pays $1.2 billion for California company

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Nashville Business Journal

Joey Jacobs is CEO of Acadia Healthcare.

Eleanor Kennedy

Staff Reporter- Nashville Business Journal

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Franklin-based Acadia Healthcare Co. announced two acquisitions in its third-quarter earnings report, including the $1.2 billion purchase of California-based CRC Health Group Inc.

Acadia also recently acquired McCallum Place, an 85-bed eating disorder treatment facility offering residential, partial hospitalization and intensive outpatient treatment programs located in St. Louis, Missouri and Austin, Texas, according to the earnings release. The purchase price for McCallum Place was not disclosed.

CRC, which Acadia calls the "nation's largest specialized behavioral health care provider," provides substance abuse treatment and other specialty programs through 36 residential facilities and 84 comprehensive treatment facilities. The company treats approximately 40,000 patients daily, and its facilities are expected to produce aggregate 2014 revenues of approximately $450 million, the release says.

The deal, which includes up to approximately 6.3 million shares of Acadia's common stock and the assumption of CRC's debt, is expected to close in the first quarter of 2015.

The CRC buy is the latest in a long string of acquisitions for rapidly growing behavioral health provider Acadia, which earlier this year extended its reach to England with the $662-million purchase of U.K.-based Partnerships in Care.

Acadia's acquisitive year helped spur a 100 percent increase in year-to-date net income, from $30.3 million as of Sept. 30, 2013 to $60.9 million as of the same date this year.

Acadia President Brent Turner and CEO Joey Jacobs have previously expressed confidence the company will hit $1 billion in revenue by the end of this year.

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Eleanor Kennedy covers Nashville's health care and technology industries.