Acadia Healthcare has announced the completion and closing of its acquisition of CRC Health Group along with financial results for the fourth quarter of 2014, of which revenue increased 55.2 percent to $294.9 million up from $190.0 million in the fourth quarter of 2013.
The company completed five acquisitions during 2014. The $1.18 billion acquisition of CRC Health Group, Acadia’s largest transaction, brings 35 inpatient facilities to the company with approximately 2,400 beds and 81 comprehensive treatment centers. The addition of these facilities brings the total number of Acadia facilities to more than 200.
“The closing of this transaction early in 2015 positions Acadia well to achieve further significant profitable growth for the year,” Joey Jacobs, Acadia chairman and CEO, said in today’s quarterly earnings call. “CRC will diversify our payers, our services and our geographic concentration. With drug rehab being one of the most fragmented segments of the behavioral health care industry, we expect to expand CRC's business through acquisition as well as the steady addition of new beds to existing facilities.”
According to a company statement, CRC produced revenues for 2014 of approximately $450 million and adjusted EBITDA of approximately $115 million.
Jacobs added that despite the larger-than-normal size of the CRC transaction, Acadia expects to complete several transactions in 2015 and will continue to evaluate additional acquisitions domestically and in the U.K.
The company, he said, expects to add 400 beds to existing U.S. facilities during 2015—not including the openings of several de novo facilities during the year—and approximately 100 in the U.K.