Nashville, Tenn. — Acadia Healthcare Co. has acquired Youth & Family Centered Services, Inc. (YFCS), an organization headquartered in Austin, Tex., that operates 13 behavioral healthcare facilities for youths and adolescents across eight states.
According to Joey Jacobs, who recently joined Acadia as CEO, the transaction brings a valuable, highly experienced team of professionals to Acadia—in addition to "more than tripling" the number of facilities and beds.
"The transaction is representative of the continuing opportunities we see in the fragmented behavioral health industry to expand our ability to provide the highest quality care to our patients through the purchase of additional facilities that are leaders in their markets," Jacobs said.
Acadia, which was formed in 2005 by the private equity investment firm Waud Capital Partners, will now operate over 1,700 patient beds and generate over $260 million in annual revenue.
“The combination of YFCS and Acadia builds upon the strength of the existing Acadia platform and creates a nationwide behavioral healthcare company of meaningful scale,” said Chuck Edwards, principal of WCP.
As a result of the transaction, Acadia now provides services at 19 facilities in 13 states across the country. According to Jacobs, it also strategically positions Acadia to become the “leading dedicated provider of high quality behavioral healthcare services” in the United States. It also marks Acadia’s seventh acquisition since the company was formed.
"As with the YFCS transaction, we expect future acquisitions to be accretive to our financial results and, through organic growth, to have the potential to contribute to our achieving Acadia’s long-term growth objectives,” Jacobs added. “With a management team highly experienced in successfully completing behavioral health facility acquisitions and integrating their operations, and with our solid financial position, we are confident of our ability to implement the company’s expansion strategies.”
Reeve Waud, Managing Partner of WCP, said the acquisition is a “classic example” of the firm’s focused approach to investing and building value for investors.
“Coupled with the expansion of Acadia’s management team, we believe this transaction firmly positions the company to take advantage of attractive market dynamics, grow aggressively and increase its geographic footprint and range of behavioral healthcare services,” Waud said.