CRC Health Group to be Acquired by Acadia Healthcare

CUPERTINO, Calif., Oct. 29, 2014 /PRNewswire/ -- CRC Health Group, Inc., the largest provider of specialized behavioral health care services in the U.S., today announced that it has entered into a definitive agreement to be acquired by Acadia Healthcare Company, Inc. (NASDAQ: ACHC).  The acquisition of CRC Health Group will expand Acadia's current presence in addiction and mental health services, and the combined company will be one of the largest and most capable in the behavioral health field.

A market leader in behavioral health with over 140 programs treating 44,000 patients per day, CRC Health Group represents a strong addition to the Acadia business, which provides specialized treatment in helping children, adolescents, adults and seniors suffering from mental health disorders and/or alcohol and drug addiction.

"We are excited to join forces with Acadia to further expand the capabilities of the company and offer the people we serve a fully comprehensive, nationwide system of behavioral health services," said Jerry Rhodes, CEO of CRC Health Group.  "The extensive addiction treatment services delivered by our talented team members are a natural complement to Acadia's network of specialized residential and outpatient facilities.  Together we will grow and excel by providing industry-leading patient care at a time of profound need in behavioral healthcare."

"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.  "We believe the addiction treatment markets that CRC serves represent a very meaningful and accretive growth opportunity.  As a well-established market leader, CRC will provide Acadia with an outstanding platform for growth in this fragmented market.  We further expect to support CRC in taking advantage of additional growth opportunities through both our access to capital and the expertise evident in the successful long-term growth record of Acadia's management team."

The transaction is expected to close in the first quarter of 2015, and is subject to regulatory review and customary closing conditions.

Citi is acting as financial advisor, and Ropes & Gray LLP is acting as legal advisor, to CRC Health Group on the transaction.

About CRC Health Group
Headquartered in Cupertino, California, CRC Health Group is the largest provider of specialized behavioral health care services in the U.S.  Each day, CRC employees treat more than 44,000 people with evidence based and outcome oriented approaches to behavioral health issues such as drug and alcohol addiction, specialized opiate addiction, weight management, eating disorders, and other behavioral issues.  The company operates residential treatment facilities, outpatient clinics, medication assisted treatment programs, outdoor wilderness camps, and a variety of other therapeutic programs.  CRC is committed to making its services widely and easily available at its 145 facilities throughout the U.S., while maintaining a passion for delivering advanced treatment.  For more information, visit www.crchealth.com.

About Acadia
Acadia is a provider of inpatient behavioral healthcare services. Acadia operates a network of 76 behavioral healthcare facilities with approximately 5,800 licensed beds in 24 states, the United Kingdom and Puerto Rico. Acadia provides psychiatric and chemical dependency services to its patients in a variety of settings, including inpatient psychiatric hospitals, residential treatment centers, outpatient clinics and therapeutic school-based programs.

SOURCE CRC Health Group

Related Links

http://www.crchealth.com