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Private equity firm to buy LifePoint Health for $5.6B

Private equity firm Apollo Global Management will purchase Brentwood, Tenn.-based LifePoint Health for $5.6 billion including debt, the two entities announced July 23.

The transaction will combine LifePoint with the health system operator Apollo currently owns, Brentwood-based RCCH HealthCare Partners. Both LifePoint and RCCH HealthCare operate facilities primarily in rural communities.

Together, the two hospital operators will run 84 hospitals as well as physician practices, outpatient services and post-acute providers across 30 states. The two operators had pro forma revenues of more than $8 billion in 2017.

The combined healthcare company, which will be privately held, will operate under the LifePoint name and be led by LifePoint's chairman and CEO William Carpenter III.

When the transaction closes, LifePoint shareholders will receive $65 per share in cash in a deal worth about $2.7 billion. In addition, the transaction includes $2.9 billion of net debt and minority interest. LifePoint shares jumped 33 percent in premarket trading as news of the transaction broke.

The deal still needs approval from LifePoint shareholders and regulators. Both entities expect the transaction to close in the next several months.

"LifePoint and RCCH are aligned in our missions and commitment to ensuring that non-urban communities across the country have access to quality care, close to home," said Mr. Carpenter. "Together, we can extend this shared focus while generating new opportunities for growth and partnerships that will help us navigate the changing healthcare industry dynamics."

More articles on transactions and valuations:
Tenet to sell remaining 3 Chicago-area hospitals
Northwell, Maimonides extend strategic partnership by 2 years
Mission Health launches nonprofit foundation ahead of proposed HCA deal

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