LifePoint Health and RCCH HealthCare Partners, which is owned by certain funds managed by affiliates of Apollo Global Management, have entered into a definitive agreement to merge.
Following completion of the deal, LifePoint shareholders will receive $65.00 per share in cash for each share of its common stock they own, which will lead to LifePoint carrying an enterprise value of around $5.6bn, including $2.9bn of net debt and minority interest.
After completion of the transaction, the merged entity will be privately held and operate under the LifePoint Health name and led by William F Carpenter III, chairman and chief executive officer of LifePoint.
LifePoint and RCCH own and operate networks of hospitals, post-acute service providers and outpatient centers.
The combination of these two firms will create strong healthcare provider with pro forma 2017 revenues of over $8bn as well as 7,000 affiliated physicians, around 60,000 employees and over 12,000 licensed beds.
After the close of the transaction, LifePoint will operate a diversified portfolio of healthcare assets, including 84 non-urban hospitals in 30 states, regional health systems, physician practices, outpatient centers and post-acute service providers.
Carpenter III said: “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.
“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. I am eager to work with the outstanding teams at LifePoint and RCCH as we continue advancing high quality patient care and Making Communities Healthier.”
RCCH chairman and chief executive officer Martin Rash said: “The opportunity to join with LifePoint marks a significant milestone in RCCH’s history. The size, scale and focus on growth for the new organization will be impactful for our patients, employees and partners. I am thrilled that these two great companies are coming together.”
Earlier this week, LifePoint Health divested its ownership interest in three Louisiana hospital campuses and associated assets to Allegiance Health Management (AHM).
Financial details of this deal have not been disclosed.
The three hospitals include Mercy Regional Medical Center in Ville Platte, Acadian Medical Center in Eunice, and Minden Medical Center in Minden.