* Says deal to add $0.17-$0.20/share to 2014 earnings
* Transaction expected to close on July 1
* Acadia shares rise as much as 15 pct
(Adds details, analyst comment, background; updates shares)
By Ankit Ajmera
June 3 Acadia Healthcare Co Inc, an
operator of psychiatric and substance-abuse clinics in the
United States, said it would buy Partnerships in Care (PiC) for
about $660 million to enter the UK's growing non-government
behavioral health care market.
The market for such care has been growing at 9.2 percent
annually since 2004, largely due to a decline in National Health
Service funding for government clinics, Acadia said on Tuesday.
Private operators control about 8 percent of the $25 billion
market, the company said.
Acadia's shares rose as much as 15 percent on the Nasdaq on
PiC, the second largest independent provider of inpatient
behavioral healthcare services in the UK, had revenue of about
$285 million in 2013. Almost all of its reimbursements come from
the NHS, Wells Fargo analyst Gary Lieberman wrote in a note.
NHS has maintained its reimbursement policies even as it cut
back on other spending.
Privately owned PiC operates 23 inpatient psychiatric
clinics with more than 1,200 beds.
"The deal would appear to be a good one for Acadia assuming
a reasonably stable reimbursement environment," Lieberman said.
Acadia, which is based in Franklin, Tennessee, said the deal
would add 17-20 cents per share to its earnings in 2014 and
40-46 cents per share in 2015.
The company forecast 2014 earnings of $1.26-$1.29 per share
Acadia operated 51 behavioral healthcare clinics with 4,200
beds in 23 U.S. states and Puerto Rico as of Dec. 31.
The company said it had received a commitment from Bank of
America Merrill Lynch to fund the deal, which is expected to
close on July 1.
Acadia's shares were up about 14 percent at $47.91 in
afternoon trading. The stock had risen about 44 percent in the
year to Monday's close.
(Editing by Kirti Pandey and Joyjeet Das)