Acadia Healthcare has signed agreements to buy two behavioral health providers, including one based on West End Avenue, that will grow its revenue base by 30 percent.
Franklin-based Acadia will pay a combined $258 million in cash for Behavioral Centers of America, which runs eight psychiatric facilities in Michigan, Ohio and Texas, and AmiCare Behavioral Centers, the operator of five properties in Arkansas. The companies operate about 610 beds and produced revenues of $122 million in the year ended Sept. 30. Acadia's top line through the first nine months of this year was about $290 million, and the company recently opened a new facility in Florida.
"Today’s announcement provides further evidence of both our continuing opportunities to purchase well-run inpatient psychiatric facilities with high quality professional staffs and our ability to execute on these opportunities," said Acadia Chairman and CEO Joey Jacobs. "In addition to providing Acadia our first entry into Ohio, which is our 21st state, these transactions will significantly expand our beds in operation. We continue to consider additional acquisition opportunities in the fragmented inpatient behavioral health industry."
BCA was founded a decade ago in Ohio and got its local connection in early 2004, when former Behavioral Healthcare Corp. CEO Ed Stack joined the company. Stack helped lure $40 million in growth capital in 2007 but stepped aside last year, when operations exec Buddy Turner took over.
Shares of Acadia (Ticker: ACHC) closed Monday trading up 1.5 percent at $22.65. So far this year, they're up almost 130 percent.
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