Business Wire·Oct 1, 2025, 4:59 PM ET

Khrom Capital Sends Letter to Board of Directors of Acadia Healthcare

ACHC

Khrom Capital, a shareholder owning 5.5% of Acadia Healthcare, has formally requested that the Board initiate a strategic review to evaluate a potential sale & maximize shareholder value.
The shareholder letter cites Acadia's "lost decade" of underperformance, noting a 70.7% decline in total shareholder return over 10 years compared to peers like HCA & Tenet.
Khrom attributes the value destruction to strategic missteps including the exit from the UK market, a costly capital expenditure campaign, & increased leverage during a DOJ investigation.
The letter criticizes the entrenched Board for lacking accountability, with directors serving up to 20 years & holding minimal personal stock ownership of only 1.3%.
Specific governance failures highlighted include the staggered board structure not de-staggering until 2029, the absence of director tenure or age limits, & the lack of comprehensive corporate governance guidelines.
Shareholder dissatisfaction was evidenced at the recent annual meeting by significant votes against directors, including 17.2 million votes against Reeve Waud.
Khrom asserts that the ongoing DOJ investigation cannot justify inaction & that credible bidders likely exist for a full or partial sale of the company.
The shareholder demands an immediate public strategic review, acceleration of governance reforms to before 2029, & the implementation of director age & tenure limits.
Khrom warns of potential proxy fights & director nominations if the Board refuses to pursue these strategic alternatives & accountability measures.