Acadia Healthcare, a publicly traded organization, entered into a definitive agreement to acquire CRC Health Group, Inc. The acquisition of CRC Health Group will add 140 programs to Acadia's current network of 76 behavioral healthcare facilities with approximately 5,800 licensed beds in 24 states, the United Kingdom and Puerto Rico.
According to Bloomberg, the deal is worth $1.18 billion. The transaction is expected to close in the first quarter of 2015, and is subject to regulatory review.
"We expect our combination with CRC to be a great transaction for both Acadia and CRC," said Joey Jacobs, Chairman and Chief Executive Officer of Acadia, in a statement.
Acadia has now made five acquisitions in the past year, including most recently Partnerships in Care, based in the United Kingdom. And the CRC deal could be substantial as CRC—backed by Bain Capital—is on track to generate $450 million in revenue this year. Acadia reported $294.5 million in revenue in the third quarter alone.
However, the CRC buy comes with a history. The state of Tennessee in 2011 temporarily shut down one of CRC’s facilities, New Life Lodge, after three patients died in a short period of time. Many criticized the organization for poorly trained staff and prioritizing profits over patients. It has since reopened.