FRANKLIN, Tenn.--(BUSINESS WIRE)--Acadia Healthcare Company, Inc. (Nasdaq: ACHC) today announced that it has acquired MMO Behavioral Health Systems, which is headquartered in Baton Rouge, Louisiana. MMO operates two acute inpatient behavioral health facilities with a total of 80 beds and located in Baton Rouge and in Covington, which is in the northern part of the New Orleans metropolitan statistical area. The acquired assets generated revenues of approximately $16 million for the 12 months ended September 30, 2015, and the transaction is expected to be immediately accretive to Acadia’s financial results, excluding transaction related expenses.
“MMO is a long-standing provider of quality behavioral health services in its markets, and we are pleased to add their facilities and their strong team to our operations,” commented Joey Jacobs, Chairman and Chief Executive Officer of Acadia. “This transaction strengthens our presence in Louisiana and gives us our first inpatient behavioral health facilities in the Baton Rouge and greater New Orleans markets. We believe we are well positioned to produce long-term organic growth in these facilities and in these markets. In addition, this transaction is representative of our ongoing opportunities to drive long-term growth through our acquisition strategy, both domestically and in the United Kingdom.”
Risk Factors
This news release contains forward-looking statements. Generally words such as “may,” “will,” “should,” “could,” “anticipate,” “expect,” “intend,” “estimate,” “plan,” “continue,” and “believe” or the negative of or other variation on these and other similar expressions identify forward-looking statements. These forward-looking statements are made only as of the date of this news release. We do not undertake to update or revise the forward-looking statements, whether as a result of new information, future events or otherwise. Forward-looking statements are based on current expectations and involve risks and uncertainties and our future results could differ significantly from those expressed or implied by our forward-looking statements. Factors that may cause actual results to differ materially include, without limitation, (i) Acadia’s ability to complete acquisitions and successfully integrate the operations of acquired facilities; (ii) Acadia’s ability to add beds, expand services, enhance marketing programs and improve efficiencies at its facilities; (iii) potential reductions in payments received by Acadia from government and third-party payors; (iv) the occurrence of patient incidents, which could adversely affect the price of our common stock and result in incremental regulatory burdens and governmental investigations; (v) the risk that Acadia may not generate sufficient cash from operations to service its debt and meet its working capital and capital expenditure requirements; and (vi) potential operating difficulties, client preferences, changes in competition and general economic or industry conditions that may prevent Acadia from realizing the expected benefits of its business strategy. These factors and others are more fully described in Acadia’s periodic reports and other filings with the SEC.
About Acadia
Acadia is a provider of inpatient behavioral healthcare services. Acadia operates a network of 258 behavioral healthcare facilities with over 9,900 beds in 39 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.
