Acadia Healthcare Company Inc (NASDAQ: ACHC) is having an incredibly strong start to the trading session this morning, and for good reason. Reports are surfacing that the company is in talks with a private equity firm to be acquired. Of course, if an acquisition were to happen, it would return value to shareholders. So, investors are excitedly pushing the stock toward the top. Today, we’ll talk about:
- The takeover chatter;
- what we’re seeing from ACHC stock as a result; and
- what we’ll be watching for ahead.
ACHC May Be Taken Over
As mentioned above, Acadia Healthcare is having an incredibly strong start to the trading session this morning after takeover chatter started to surface. In various reports available online, it is being suggested that the company is in talks with private equity firms about selling itself. According to the reports, ACHC has attracted buyout interest from several parties.
The talks with regard to the potential sale of ACHC come after U.S. legislative reforms expanded insurance coverage for behavioral health and substance abuse treatment. According to the reports, KKR & Co and TPG Global are two of the private equity firms that have expressed interest in acquiring the company.
Nonetheless, it’s important to keep in mind that neither ACHC or either of the interested parties have commented on the potential transaction and there can be no assurance that a takeover will actually take place.
What We’re Seeing From The Stock
One of the first lessons that we learn when we start to dig into the market is that the news leads to moves. In the case of Acadia Healthcare, the news is proving to be overwhelmingly positive. After all, if an acquisition does take place, it will likely happen at a premium, offering incredible value to shareholders. So, it comes as no surprise to see that excited investors are sending 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 (8:56), ACHC is trading at $39.00 per share after a gain of $3.23 per share or 9.03% 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 potential takeover and excited to see if the acquisition actually takes place. Nonetheless, we’ll continue to follow the story closely and bring the news to you as it breaks!
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