Bain Capital, KKR to Sell 32M Shares of HCA Stock

Two of the biggest stockholders of Nashville, Tenn.-based Hospital Corporation of America — Bain Capital Partners and Kohlberg Kravis Roberts & Co. — said they plan to sell roughly 32 million shares of HCA's common stock in an underwritten secondary offering.

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.

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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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