Universal Health to acquire Psychiatric Solutions for $3.1 billion

Universal Health Services Inc (UHS), one of the largest hospital management companies in the US, today entered into a deal to acquire Psychiatric Solutions Inc (PSI), a mental health facilities operator for $3.1 billion including debt.

The highly strategic acquisition by UHS ended a week-long bidding war with private equity firm Bain Capital Partners that was eying to takeover Psychiatric Solutions since the last two months.

Boston-based Bain Capital owns Nashville-based HCA Inc., the largest hospital chain in the US.

UHS, a Fortune 500 company and PSI announced today that they have reached a definitive agreement whereby UHS will acquire PSI for $33.75 per share in cash, or approximately $2 billion.

Including the assumption of approximately $1.1 billion in PSI net debt, the total transaction consideration is approximately $3.1 billion.

UHS, based in King of Prussia city in Pennsylvania, owns or operates 25 acute care hospitals and 102 behavioural health care facilities and schools located across 32 states, as well as in Washington, D.C. and Puerto Rico.