Bain Capital and KKR, both private equity firms, will receive all proceeds from the sale. Before the announcement, stockholders affiliated with the two groups had a combined 40 percent ownership, or 177 million shares of HCA’s 440.7 million total outstanding shares, according to a MarketWatch report.
In 2006, Bain Capital, KKR, Merrill Lynch and family members of HCA co-founder Tommy Frist Jr., MD, completed a leveraged buyout of HCA for roughly $32 billion, a record at the time. Bain Capital and KKR made news in September after other shareholders of HCA, the largest for-profit hospital chain in the country, filed a lawsuit against the two and other private equity firms alleging bid-rigging as the company was going public.
Last month, HCA recorded third-quarter profit of $360 million, which was significantly higher than last year, when losses on the early retirement of debt ate away at its earnings.
More Articles on HCA:
For-Profit Hospital Stock Report: Week of Dec. 3-7, 2012
HCA Completes Purchase of Thousand Oaks Surgical Hospital
HCA Shareholders Allege Bain Capital, Other Private Equity Firms Colluded in Buyout
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