Franklin-based Capella Healthcare, Inc. (“Capella”), a privately-owned provider of healthcare services and one of the largest for-profit hospital companies in the nation, announced on July 27 that its parent company and sole stockholder, Capella Holdings, Inc., had signed a definitive agreement with Birmingham-based Medical Properties Trust, Inc. (“MPT”) (NYSE:MPW) for the acquisition of Capella for $900 million in cash. The transaction is expected to be finalized during the second half of 2015, following customary regulatory approvals. Capella is presently owned by funds affiliated with GTCR, a leading private equity firm.
“After an extensive and year-long evaluation of different strategic opportunities, Capella Healthcare is pleased to announce that Medical Properties Trust, Inc. has agreed to provide the funding that will allow Capella continue to build upon our legacy of service excellence to our existing community hospitals and to provide attractive access to capital in support of our long-term growth plans,” said Michael A. Wiechart, president and CEO of Capella. “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. Combined with Capella’s outstanding expertise in operating hospitals, MPT’s long-term investment and commitment will be invaluable in helping us achieve our primary goals of patient care excellence and partnering with new communities.”
“We are delighted to have earned the confidence of Capella Healthcare as it further expands its footprint across the country,” said Edward K. Aldag, Jr.,MPT’s chairman, president and chief executive. “MPT’s highly successful investment of real estate capital in the hospital business has allowed us to carve a unique niche in the largest and fastest-growing segment of the U.S. economy as we continue to focus exclusively on providing capital to licensed hospitals of all kinds.”
“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,” Wiechart said.
The management company will retain control of the day-to-day operations of Capella’s hospitals with Wiechart continuing as president and CEO and no other changes anticipated in hospital management.
Capella is a privately-held company which, upon its founding in 2005, partnered with GTCR. GTCR’s equity investments and commitment to Capella have allowed the company to grow steadily over the last 10 years. “Since our founding back in 2005, GTCR has been an exceptional partner in helping create a company that is built to last and to make a difference in delivering high quality care in communities across the country,” said Wiechart. “As the company moves forward, we are profoundly grateful for the leadership, guidance and financial support that GTCR has provided. Their investments have positioned the company for our next level of growth and success, which includes four additional hospitals which have chosen us as their future partner and for which diligence is currently in progress.”