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Capella to be sold for $900M: 5 things to know about the deal

Capella Holdings, the parent company of Franklin, Tenn.-based Capella Healthcare, has signed a definitive agreement for Birmingham, Ala.-based Medical Properties Trust to acquire Capella for $900 million in cash.

Here are five things to know about the deal.

1. Under the deal, MPT will make a $600 million investment in Capella's real estate and an investment of approximately $300 million in Capella's operating entitites.

2. The transaction is expected to close in the second half of 2015. "Upon closing, we expect a management company — owned by current Capella senior management — will own with MPT the hospital operations and will operate and manage the hospital business while Capella's real estate interests are acquired by MPT," said Michael A. Wiechart, president and CEO of Capella.

3. Capella is presently owned by funds affiliated with GTCR, a Chicago-based private equity firm.

4. Regarding the deal, MPT Chairman, President and CEO Edward K. Aldag Jr. said, "We are delighted to have earned the confidence of Capella Healthcare as it further expands its footprint across the country."

5. "Medical Properties Trust brings to the table significant expertise in healthcare real estate, efficient access to capital markets and, most importantly, a company culture that is compatible with Capella's mission, vision and values," said Mr. Wiechart.

More articles on healthcare industry transactions:

Top 5 hospital deals in Q2
Merged and none the wiser: What keeps hospitals from gaining economies of scale?
10 recent hospital transactions and partnerships

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