Here are six things to know about the transaction.
1. Nobilis will acquire a 60 percent stake and management control of the joint venture entity, which was formed to own and operate the successor hospital.
2. In the transaction, Nobilis contributed approximately $3.2 million dollars to acquire its 60 percent stake.
3. In addition to managing the corporate affairs of the new hospital, Nobilis will provide day-to-day management services pursuant to a management agreement executed as part of the transaction.
4. Harry Fleming, Nobilis’ chairman, said in a news release, “Consistent with our Houston and Dallas businesses, we see an opportunity to better serve the Phoenix market by adding inpatient capacity to complement our existing ASC in that market. As with our First Street acquisition last year, we expect to see positive results from this transaction in short order.”
5. The transaction is expected to close in early November and is contingent upon the successful transfer of the hospital’s license through the change of ownership process pursuant to Arizona Health Services regulations.
6. Upon closing, the joint venture entity will have approximately $4.2 million dollars in working capital. In addition, Nobilis has agreed to facilitate establishing a $4.5 million dollar line of credit to provide additional working capital as needed.
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