Acadia Healthcare plans to sell $340 million of its stock to investors to help fund its acquisition of Great Britain's No. 2 private behavioral health services provider.
Executives at Franklin-based Acadia last week said they will pay $660 million for Partnerships in Care, which will take the combined company's revenues to about $1.1 billion annually. Bank of America Merrill Lynch has committed to fund part of the deal, and Acadia's leaders expect to also raise some long-term debt. At or near current prices, the planned $340 million sale will grow Acadia's share count by about 15 percent.
The banks underwriting the sale have granted some Acadia shareholders a 30-day option to sell another roughly $50 million worth of stock. The vast majority of those shares would come from investment firm Waud Capital Partners, which would trim its stake to 22.4 percent if the extra shares are sold. Three other current or former insiders are set to sell another roughly 24,000 shares to the eight-bank underwriting group, which is led by BofA Merrill Lynch, Jefferies LLC and Citigroup.
Shares of Acadia (Ticker: ACHC) traded down about 1 percent in after-hours trading Monday to $45.95. Year to date, they're down about 3 percent.