Universal Health Services on Monday completed its $3.1 billion acquisition of Franklin-based Psychiatric Solutions Inc.
Pennsylvania-based UHS struck a deal in May to buy Psych Solutions for $33.75 per share and assume its $1.2 billion debt load, creating a company with nearly 200 behavioral health centers in addition to UHS’ 25 acute-care hospitals.
“This transformative transactions is compelling for patients, employees and stakeholders of both companies as it establishes an industry leader with the scale and scope to impact mental health issues at the national level,” said UHS CEO Alan Miller in a statement. “The new combined company looks forward to exceeding expectations by continuing to provide the quality treatment services that have kept UHS in the forefront of the health care industry for years.”
In order to receive antitrust approval for the deal, UHS has agreed to divest four facilities within the next nine months, including UHS’ Hospital San Juan Capestrano in Puerto Rico and Psychiatric Solutions’ MeadowWood Behavioral Health in Delaware and its Las Vegas facilities Montevisa Hospital and Red Rock Behavioral Health Hospital. Combined, the 2009 revenue for those facilities was about $64.5 million.
Looking ahead, UHS expects to generate between $35 million and $45 million in annual cost savings from the deal within the next three years, much of it coming from cuts to Psych Solutions' senior management team.
Shares of UHS (Ticker: UHS) closed at $40.89 Monday and were trading higher after hours Monday. Meanwhile, Psych Solutions notified the Securities and Exchange Commission that its common stock is being removed from the Nasdaq.