PEABODY, Mass., March 16, 2011 /PRNewswire/ -- PHC, Inc., d/b/a
Pioneer Behavioral Health (NYSE Amex: PHC), a leading provider of
inpatient and outpatient behavioral health services, today
announced that it has signed an agreement to acquire MeadowWood
Behavioral Health, located in New Castle,
Delaware, for $21.5 million,
subject to customary purchase price adjustments. The transaction is
expected to close late in the second quarter of 2011.
The facility is a licensed acute care psychiatric hospital with
58 beds providing services on its 11-acre campus to adults
suffering with mental illness and substance abuse. MeadowWood has
both inpatient and partial hospitalization services focused on
geriatric, co-occurring and acute mental disorders.
"This important acquisition will help accelerate our growth and
improve our geographic penetration," commented Bruce A. Shear, Pioneer's president and CEO.
"MeadowWood produced revenues of approximately $15 million for the 12-month period ended
December 31, 2010, or approximately
30% of our fiscal 2010 full-year revenue. This acquisition is
expected to be highly synergistic to PHC and in-line with our
growth-related goals. Not only will the expansion into Delaware open a new market for our services,
but the margins of this facility are strong due to MeadowWood's
operating model, helping to improve the Company's margins after the
acquisition is fully integrated into the PHC system. We expect this
transaction to be accretive and to represent a future growth
opportunity for our Company."
PHC anticipates seeking approval for additional beds to expand
the facility during the next 12 months. PHC will retain the
existing staff at MeadowWood under PHC management, which should
improve efficiency by spreading more beds across the same operating
leadership.
Mr. Shear continued, "We are excited to add the MeadowWood
facility, its skilled and experienced health care team and a
reputation for high quality care, to the PHC organization."
The anticipated acquisition is being made in connection with the
divestiture requirements imposed on Universal Health Services
following its acquisition of Psychiatric Solutions. The closing is
contingent upon regulatory approval, including approval from the
FTC and appropriate regulatory agencies of the State of Delaware, and other customary closing
conditions.
PHC has received a commitment for the funding of up to
$23.5 million of senior secured term
debt and a $3.0 million senior
secured revolving credit facility in connection with the
acquisition from Jefferies Finance LLC, a division of Jefferies and
Company Inc. Jefferies is a full service securities and investment
banking firm serving companies and their investors globally.
About PHC d/b/a Pioneer Behavioral Health
PHC, Inc., d/b/a Pioneer Behavioral Health, is a national
healthcare company providing behavioral health services in five
states, including substance abuse treatment facilities in
Utah and Virginia, and inpatient and outpatient
psychiatric facilities in Michigan, Pennsylvania, and Nevada. The Company also offers internet and
telephonic-based referral services that includes employee
assistance programs and critical incident services. Contracted
services with government agencies, national insurance companies,
and major transportation and gaming companies cover more than one
million individuals. Pioneer helps people gain and maintain
physical, spiritual and emotional health through delivering the
highest quality, most culturally responsive and compassionate
behavioral health care programs and services. For more information,
visit www.phc-inc.com.
Statement under the Private Securities Litigation Reform Act
of 1995
This press release may include "forward-looking statements" that
are subject to risks and uncertainties. Forward-looking statements
include information about possible or assumed future results of the
operations or the performance of the Company and its future plans
and objectives, the Company's ability to complete and effectively
integrate the acquisition and the Company's ability to complete the
committed financing. Various future events or factors may cause the
actual results to vary materially from those expressed in any
forward-looking statements made in this press release. For a
discussion of these factors and risks, see the Company's annual
report on Form 10-K for the most recently ended fiscal year.
Contact:
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PHC, Inc.
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Bruce A. Shear,
978-536-2777 President & CEO
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or
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Hayden IR
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Brett Maas, 646-536-7331
Managing Partner
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E-mail:
brett@haydenir.com
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SOURCE PHC, Inc., d/b/a Pioneer Behavioral Health