Activist Engine Capital pushes for changes at Acadia Healthcare
Activist investor Engine Capital has urged Acadia Healthcare's board to consider an asset sale and appoint new directors. Engine Capital, which holds a 3% stake in the company, criticized Acadia's poor returns linked to its 2022 reorganization. The investor is advocating for significant governance changes, including board refreshment, cost-cutting measures, and asset sales to repurchase undervalued shares. Following the news, Acadia's shares rose 4.5% in premarket trading.
Sept 24 (Reuters) - Activist investor Engine Capital sent a letter to Acadia Healthcare’s (ACHC.O) board on Wednesday asking the company to explore a potential asset sale and add new directors to its board.
Shares of Franklin, Tennessee-based Acadia Healthcare rose 4.5% premarket.
Engine Capital, which owns about a 3% stake in Acadia, said the healthcare service provider has sustained negative returns due to ineffective execution of its reorganization in 2022.
The activist investor urged for a major overhaul of the company’s governance, asking for a board refresh, cost cutting, and sale of assets to repurchase undervalued shares.
The company did not immediately respond to Reuters’ request for comment.
