Magellan Acquires Merit; Consolidation of Ownership Grows

OPEN MINDS The Behavioral Health & Social Service Industry Analyst Industry News Magellan Health Services and Merit Behavioral Care Corporation announced the signing of a merger agreement on October 27, 1997, under which Magellan will acquire Merit, including the purchase of all of Merit's outstanding stock for approximately $460 million in cash. Besides the stock purchase, Magellan will also refinance Merit's existing debt, including $100 million in 11.50% senior subordinated notes and $375 million in 11.25% senior subordinated notes. Under the terms of the agreement, Magellan's Mac Crawford will be the chairman and chief executive . . .