Shearman & Sterling represented the Special Committee of the Board of Directors of Psychiatric Solutions in the recently announced acquisition by Universal Health of Psychiatric Solutions for $33.75 per share in cash, or approximately $2 billion. Including the assumption of approximately $1.1 billion in Psychiatric Solutions net debt, the total transaction consideration is approximately $3.1 billion.

Psychiatric Solutions offers behavioral health programs to critically ill children, adolescents and adults and is the largest operator of owned or leased freestanding psychiatric inpatient facilities. Psychiatric Solutions also manages freestanding psychiatric inpatient facilities for government agencies and psychiatric inpatient units within medical/surgical hospitals owned by others. UHS operates acute care hospitals, behavioral healthcare facilities and ambulatory centers located throughout the United States and Puerto Rico.

The Shearman & Sterling team was led by partners Peter Lyons (New York-Mergers & Acquisitions), Eliza Swann (New York-Mergers & Acquisitions) and Ken Prince (New York-Antitrust/Competition), counsel Lisl Dunlop (New York-Antitrust/Competition) and associate David Connolly (New York-Mergers & Acquisitions). Other Shearman & Sterling lawyers involved in this transaction include partners John Cannon (New York-Executive Compensation & Employee Benefits), Alan Goudiss (New York-Litigation), Monica Holland (New York-Finance), Lona Nallengara (New York-Capital Markets) and Michael Shulman (Washington, DC-Tax) and associates Tim Haney (New York-Antitrust/Competition), Justin Mak (New York-Mergers & Acquisitions) and Dorman Yale (New York-Mergers & Acquisitions).