International law firm Stephenson Harwood LLP has advised Acadia Healthcare Company, a US based provider of inpatient behavioural healthcare facilities, on a US$662 million agreement to acquire Partnerships in Care (PiC). The acquisition completed on 1 July 2014.
Acadia operates a network of 52 behavioural healthcare facilities with more than 4,300 licensed beds in 24 states in the US and Puerto Rico. Acadia provides psychiatric and chemical dependency services to its patients in a variety of settings, including inpatient psychiatric hospitals, residential treatment centres, outpatient clinics and therapeutic school-based programs.
PiC is the second largest independent provider of secure and rehabilitation mental healthcare facilities in the UK. It operates more than 1,200 beds across 23 hospitals, providing care and treatment for patients diagnosed with a mental illness, personality disorder, learning disability, brain injury or autism.
The purchase was financed through an underwritten public offering of Acadia common stock, to raise US$374 million, and a private offering of senior unsecured notes to raise US$300 million. Bank of America Merrill Lynch arranged the financings.
Andrew Edge, head of corporate at Stephenson Harwood commented "We're delighted to have advised Acadia, a new client of ours, on this important acquisition. The transaction provides Acadia with an exciting opportunity to expand into the UK and diversify its portfolio."
The team at Stephenson Harwood was led by corporate partners Andrew Edge and Andrew McLean. They were supported by corporate associate Luwisha Neskovic, projects associate Ian Pumfrey, real estate partner Andrew Hill and real estate associate Archie Campbell. Freshfields Bruckhaus Deringer advised PiC. Nashville law firm Waller Lansden Dortch & Davis acted for Acadia on its US financing and Davis Polk & Wardwell acted for Bank of America Merrill Lynch in relation to the financings. Travers Smith acted for management.