KING OF PRUSSIA, Pa., Oct. 10 /PRNewswire-FirstCall/ -- Universal Health
Services, Inc. (NYSE: UHS) announced today that it has acquired the stock of
KEYS Group Holdings, LLC. ("KEYS Group") including Keystone Education and
Youth Services, LLC. Through this acquisition, we have added a total of 46
facilities in ten states including 21 residential treatment facilities with
1,280 beds, 21 non-public therapeutic day schools and four detention
facilities. This acquisition is expected to generate approximately $165
million of annual revenue and the operational effective date is October 1,
2005. The net purchase price was $207 million and was paid in cash.
Debra K. Osteen, President of Universal Health's Behavioral Health
division, remarked, "We are very pleased to announce our acquisition of the
KEYS Group. These facilities are very well run and are an excellent addition
to our portfolio of behavioral health facilities. We look forward to working
with the many fine employees of these facilities to continue to provide high-
quality behavioral healthcare to the communities they serve. The facilities we
are acquiring provide an opportunity to expand our residential treatment
facilities, which have been a solid performer for the division. In addition,
the acquisition enables us to enter a new business in non-public therapeutic
day schools. We believe there is a need for this service and hope to expand
the current operations and grow in other areas of the country."
In addition, the Company announced that it has acquired four therapeutic
boarding schools and one outdoor intervention program from the Brown Schools
of Austin bankruptcy. The five facilities include the 100-bed Boulder Creek
Academy and the 120-bed Northwest Academy in Bonner's Ferry, Idaho, the 80-bed
Rocky Mountain Academy and an outdoor intervention program located in Naples,
Idaho, and the 90-bed King George School in Sutton, Vermont. The King George
School is the only school, which was open at the time of acquisition. We
expect to reopen the others, which have been closed since March 2005, over the
next several months.
Alan B. Miller, President and Chief Executive Officer of Universal Health
Services, Inc., said, "We have a proven track record of successfully
integrating behavioral health acquisitions. With the completion of these
acquisitions UHS is well positioned as the Nation's largest provider of
inpatient behavioral health services operating a total of 95 facilities in 26
states and Puerto Rico.
The Company also announced that its Board of Directors authorized an
additional 2,000,000-share repurchase program to supplement the 2,110,000
shares remaining under previous authorizations. The Board also gave management
discretion to use the authorization to purchase its convertible debentures due
2020. Pursuant to the stock and convertible debenture repurchase program, the
Company, from time to time and as conditions allow, may purchase shares or
debentures on the open market or in negotiated private transactions.
Universal Health Services, Inc. is one of the nation's largest hospital
companies, operating acute care and behavioral health hospitals, ambulatory
surgery and radiation centers nationwide. It acts as the advisor to Universal
Health Realty Income Trust, a real estate investment trust (NYSE: UHT).
Certain statements in this release may constitute forward-looking
statements and are subject to various risks and uncertainties as discussed in
the Company's filings with the Securities and Exchange Commission. The
Company is not obligated to update these forward-looking statements even if
the Company's assessment of these risks and uncertainties changes.
For additional information on the Company, visit our web site:
SOURCE: Universal Health Services, Inc.
CONTACT: Steve Filton, Chief Financial Officer, Universal Health