Additional Relevant Details The CMA, which is the United Kingdom’s primary competition and consumer authority, announced that the acquisition of Priory by Acadia will be referred for a Phase 2 investigation, unless Acadia and Priory are able to offer undertakings that address the CMA’s competition concerns in relation to the provision of behavioral healthcare services in certain markets. Priory, a leading provider of behavioral healthcare services in the United Kingdom, was acquired by Acadia on February 16, 2016, for approximately $2.2 billion. At the completion of the transaction, Priory operated more than 300 facilities with approximately 7,100 beds.
Should the CMA proceed with the Phase 2 assessment, they will continue to investigate whether the Priory acquisition has created a relevant merger situation that has resulted, or may be expected to result, in a substantial lessening of competition within any market or markets in the U.K. for inpatient behavioral healthcare services. The Phase 2 assessment is expected to take approximately nine months to complete. During this period, the “hold-separate” requirements will remain in place.Acadia will conduct a conference call with institutional investors and analysts today at 10:30 a.m. ET to discuss the CMA’s decision. Additionally, a live broadcast of the conference call will be available at www.acadiahealthcare.comin the “Investors” section of the website. The webcast of the conference call will be available through July 31, 2016.