Cravath Reps Universal Health In $3B Psychiatric Deal

Law360, New York (May 17, 2010, 3:50 PM EDT) -- Hospital operator Universal Health Services Inc. has agreed to pay $3.1 billion to acquire inpatient psychiatric facility company Psychiatric Solutions Inc. in a strategic transaction expected to generate between $35 million and $45 million in cost synergies in the next few years.

The deal includes the assumption of about $1.1 billion in PSI net debt and about $2 billion in cash, or $33.75 per PSI share, the companies said in announcing the deal Monday.

“This transformative transaction is very compelling for shareholders, patients and employees of...
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