Community Health to buy Triad for $5.1BHospital operator to pay $54 per share for smaller industry peer, outbidding earlier suitors.NEW YORK (CNNMoney.com) -- Community Health Systems announced a deal Monday to buy Triad Hospitals for $54 per share in cash, or approximately $5.1 billion, plus $1.7 billion in debt. Community Health Systems will pay a 9 percent premium in a cash deal for Triad's stock which closed on Friday at $49.36. The deal outbids an existing $4.5 billion buyout offer made in February by CCMP Capital Advisors LLC and Goldman Sachs Capital Partners, the private-equity arm of Goldman Sachs Group Inc (up $2.79 to $201.79, Charts). Nashville, Tenn.-based Community Health Systems (down $2.39 to $34.41, Charts) leases or operates 77 hospitals in 22 states, while Plano, Texas-based Triad (up $2.52 to $51.88, Charts) operates 53 hospitals and 13 ambulatory surgery centers in 17 states, a release said. After the transaction, Community Health will be the largest publicly traded hospital operating company in the United States, competing with such giants as privately-held HCA, and Health Management Associates Inc (up $0.12 to $11.19, Charts). Community Health operates primarily in the southeast and in rural areas, according to Hoovers while Triad is represented also in the southwest. "This is a strategic growth opportunity for CHS," said Wayne T. Smith, Chairman, President and CEO of CHS, in a release. "This deal will substantially increase CHS's overall scale and enhance its geographic diversity," Smith said. "This acquisition complements our rural strategy by adding mid-size markets in great locations." --Reuters contributed to this report --------------------------------------------------- |
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