Acadia Healthcare Company Inc. said it will acquire CRC Health Group Inc. for $1.18 billion, expanding its in-patient mental health and substance abuse treatment facilities. Acadia is headquartered in Franklin, TN and owns 76 facilities with about 5,800 beds in 24 states, Puerto Rico and the U.K. CRC Health Corporation was founded in 1995 and is headquartered in Cupertino, California. CRC Health Corporation operates as a subsidiary of CRC Health Group, Inc. They have about 120 facilities and sees about 40,000 patients daily. CRC was expected to generate $450 million in revenue in 2014, and adjusted earnings of $115 million

The acquisition is Acadia’s fifth in the past 12 months, adding 27 facilities and more than 1,500 beds. Earlier this year, Acadia purchased Partners in Care, a U.K.-based company for $662 million.

The behavioral health and substance abuse industry is considered by business analysts to be highly fragmented in the U.S. and the U.K. with significant room to add new beds in existing facilities. Growth and consolidation is on the horizon for all these big players.

CRC Health, based in Cupertino, California, is a substance-abuse treatment provider that has about 120 facilities and sees about 40,000 patients daily, according to the statement. CRC is expected to generate $450 million in revenue this year, and adjusted earnings of $115 million, Acadia said.