|Addiction Treatment Industry Newswire|
|03/03/2015 -ATIN – Acadia Healthcare, which after acquiring CRC Health Corp. recently is now by far the nation’s largest provider of specialty addictions care, announced early yesterday that it paid $53M for a Wisconsin-based group of addiction clinics called Quality Addiction Management, which Acadia (NASDAQ: ACHC) said operates seven comprehensive clinics in the state. Quality Addiction Management serves on some level of care 2,600 clients per day, according to Acadia, and the deal seemed to be well received by the marketplace, by mid morning driving Acadia stock up by about 3 percent as investors anticipated that Acadia CEO Joey Jacobs would continue to grow the company by acquisition and were reassured that the strategy is being adhered to and coming to fruition.
Also, the Quality Addiction Management deal comes with a bonus as its CEO, Dr. Michael Goldstone, will be staying on at Acadia as chief medical officer of Acadia’s comprehensive treatment centers, which is what CRC calls its outpatient medication based treatment facilities and is a business that CRC had been building for decades starting when CRC founder Barry Karlin got together with Phil Herschman in the 1990s and bought the company’s first medication-based clinics. CRC’s former owners, Bain Capital, had appointed Jerry Rhodes as CRC’s new CEO, a highly respected CRC executive with a lot of hands on experience, not too long before Acadia’s CRC purchase last year.
Smooth Transition, Investor Confidence
Mr. Rhodes is now no doubt reporting to Acadia CEO Mr. Joey Jacobs, who has managed it seems very adroitly to get the market to accept the Acadia acquisition of CRC without much, if any, problems at all. While Bain took a lot of Acadia stock as consideration in its sale of CRC to Acadia, Acadia seems to have had little problem in refinancing the considerable amount of debt on CRC’s balance sheet, according to recent press releases, which is an indication of a smooth transition and a high degree of investor confidence in Mr. Jacobs’ ability to successfully integrate the considerable CRC assets into Acadia and executing the deal with sensitivity to mission as well as reaching financial targets. CRC added approximately $450M in revenue to Acadia’s income statement as a result of the acquisition.
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