Behavioral Healthcare Services - Coverage Report Q1 2019

Published on: 03/11/2019

The Behavioral Healthcare Services industry experienced a banner year of merger and acquisition (M&A) activity in 2018. The number of transactions increased 59% year-over-year to reach a historic industry high of 97 announced or closed transactions. In addition to volume, two of the largest disclosed deals on record occurred. In a go-private bid, Centerbridge Partners agreed to acquire all outstanding shares of mental and behavioral disabilities services provider Civitas Solutions, Inc.(NYSE:CIVI) for $17.75 per share in cash. The deal is projected to close for an enterprise value of $1.4 billion, representing a 27% premium over the average 30-day closing stock price as of December 18. In another multi-billion dollar deal, UnitedHealth Group acquired Genoa Healthcare for $2.5 billion in August. Genoa has more than 400 pharmacies across the US which specialize in serving the needs of those in the behavioral health and addiction treatment communities.

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