Sponsored by VMG Health | info@vmghealth.com | 214.369.4888

Prospect Medical Holdings can't consider $50M acquisition offer

Los Angeles-based Prospect Medical Holdings says it cannot consider a $50 million acquisition offer from Ontario, Calif.-based Prime Healthcare Services because it has already entered into another deal, according to the Journal Inquirer.

Prospect Medical Holdings is owned by certain funds of private equity firm Leonard Green & Partners and members of the company's management team. In October, Prospect said its shareholders reached an agreement to purchase Leonard Green & Partners' outstanding shares of the company, according to the report.

Leonard Green & Partners is considering selling its majority stake in Prospect for roughly $12 million, and Prime said it would pay $50 million for the company, according to an offer letter from Prime President and CEO Prem Reddy, MD, obtained by the Journal Inquirer

In a Nov. 24 statement to the Journal Inquirer, Prospect said it cannot consider Prime's offer or other proposals because it signed a "binding agreement" with Leonard Green & Partners "several months ago." Prospect said it is required to close the transaction, which is expected to take three to six months to complete, according to the report.

Access the full Journal Inquirer article here.

More articles on healthcare industry transactions:

HCA moves forward with New Hampshire hospital takeover
Texas Health Resources, Methodist, LHC Group expand partnership
1,250 healthcare deals have been announced, completed this year

Copyright © 2022 Becker's Healthcare. All Rights Reserved. Privacy Policy. Cookie Policy. Linking and Reprinting Policy.

 

Featured Learning Opportunities

Featured Whitepapers

Featured Webinars