UHS To Buy PSYS For $33.75 A Share

The hospital operator Universal Health Services UHS has today announced the acquisition of the mental-health facilities operator Psychiatric Solutions PSYS for $2 billion. Under the terms, UHS will pay $33.75 a share in cash, apart from assuming about $1 billion of PSYS' debt, making it a nearly $3.1 billion deal. The deal will close in the fourth quarter, and the merged company is expected to generate roughly $35-$45 million in annual cost synergies over the next three years. King of Prussia, Pennsylvania-based UHS expects the deal, excluding the one-time costs associated with the acquisition, to be significantly accretive to its earnings per share. Alan Miller, Chairman and CEO of UHS said, "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. The combination with PSI will further strengthen our behavioral health division, which has already grown substantially through capacity expansion and strategic acquisitions." While shares of PSYS closed at $32.63, up 1.97%, UHS gained 3.55% before closing at $39.04 on Friday. Read more from Benzinga's Company news.