Acadia Healthcare Company Inc (NASDAQ: ACHC) is headed up early on in the pre-market hours this morning, and for good reason. Stories are breaking around the web that a buyout giant is interested in purchasing a key asset from the company. Of course, the news excited investors, sending the stock screaming for the top. Today, we’ll talk about:
- The potential asset sale;
- what we’re seeing from ACHC stock as a result; and
- what we’ll be watching for ahead.
ACHC Investors Are Hoping For An Asset Sale
As mentioned above, Acadia Healtchare is having a strong start to the trading session in the pre-market hours this morning after stories are breaking that a buyout firm is interested in the company. According to various reports, KKR, a buyout firm led by Henry Kravis, is interested in the company’s nationwide chain of addiction treatment clinics.
Sources for these stories are stating that KKR is very well positioned to win an auction for ACHC, a company that has a market cap of $3.8 billion and an additional $3 billion in debt. The acution will be run by Jefferies with other suitors including TPG Capital and Bain Capital.
The interest in buying out the company comes for good reason. At the moment, opioid addiction is an epidemic in the United States, and one that the government is pushing to control. Therefore, there will likely be an increase in federal reimbursement to treat opiod addiction. Of course, this makes ACHC more attractive to potential suitors.
What We’re Seeing From The Stock
One of the first lessons that we learn when we start to dive into the market is that the news leads to moves. In the case of Acadia Healthcare, the news is positive. With an auction around the corner, it looks like there are plenty of suitors with deep pockets, ready to jump on the opportunity to own the chain of addiction treatment clinics. So, it comes as no surprise that excited investors are pushing the stock on a run for the top. As is just about always the case, our partners at Trade Ideas were the first to alert us to the gains. Currently (8:28), ACHC is trading at $43.80 per share after a gain of $2.30 per share or 5.54% thus far today.
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What We’ll Be Watching For Ahead
Moving forward, the CNA Finance team will continue to keep a close eye on ACHC. In particular, we’re interested in following the story surrounding the company’s continued efforts to auction itself off to the highest bidder, especially considering the fact that there are plenty of bidders with deep pockets interested here. Nonetheless, we’ll continue to follow the story closely and bring the news to you as it breaks!
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