Universal Health Services acquired Psychiatric Solutions, Inc. for ~$3.1 billion, a transaction completed in November 2010, structured as all cash.
Psychiatric Solutions, Inc. operates in Behavioral Health, is based in United States (Franklin, Tennessee HQ; 94 facilities across 32 states, Puerto Rico and the U.S. Virgin Islands). UHS acquired Psychiatric Solutions, Inc. (PSI), then the largest standalone operator of freestanding inpatient psychiatric facilities, in an all-cash deal. The transaction combined UHS's acute-care and behavioral operations with PSI's 94 inpatient psychiatric facilities and made UHS the largest facilities-based behavioral health provider in the country. Management framed the deal as transformative and expected it to be significantly accretive to earnings.
A transformative combination intended to create a premier facilities-based healthcare provider with an industry-leading behavioral health platform and further scale in a fragmented sector.
Established national platform of freestanding psychiatric hospitals with scale UHS could not build organically at comparable speed. Approximately $35-45 million in annual cost synergies expected within three years of closing. UHS Behavioral Health division
This transformative transaction is very compelling for shareholders, patients and employees of both companies, and we are excited to add PSI's assets to our portfolio.Alan B. Miller, Chief Executive Officer and Chairman of the Board, Universal Health Services, Inc.
On behalf of the Special Committee of the board of directors of PSI, we are pleased to have reached an agreement that will enable us to deliver significant and certain value to our shareholders.Christopher Grant, Jr., Chairman of the PSI Special Committee
Advisory firms were not disclosed for this transaction.