Psychiatric Solutions to be acquired by Universal Health ServicesPsychiatric Solutions, the world's largest operator of freestanding psychiatric facilities, will soon be acquired by Universal Health Services in a deal valued at $3.1 billion.

In March, Psychiatric Solutions confirmed that it had formed a special committee of board members and outside advisors to consider potential offers for the company, which currently owns or leases 94 facilities in 32 states, Puerto Rico and the U.S. Virgin Islands. Now the announcement that Pennsylvania-based Universal Health Services will be purchasing the company puts an end to months of speculation for PSI's shareholders.

UHS beat out Boston-based private equity firm Bain Capital to acquire the mental health facility operator. The company estimates that the acquisition of PSI will save it $35 to $45 million annually.

"Over the years, we have looked at many assets in smaller portfolios at substantially higher prices," UHS chief financial officer Steve Filton said. "This transaction provides a unique opportunity to get a larger group of assets at a more attractive aggregate price."

This week, approximately 97 percent of PSI shareholders voted in favor of the merger.
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