Apollo To Buy Hospital Chain LifePoint For $5.6B

A LifePoint holding. Photo by Google Street View.

BRENTWOOD, TN–An affiliate company of Apollo Global Management has agreed to buy out LifePoint Health, a locally-based hospital chain, for $5.6 billion. Structured as a merger with RCCH HealthCare Partners, which is owned by Apollo, the purchase price also includes $2.9 billion of net debt and minority interest and represents a premium of approximately 36% to LifePoint’s closing share price on July 20, 2018. Under the deal, LifePoint shareholders will receive $65.00 per share in cash for each share of LifePoint common stock they own.

The combined company will be privately held, operate under the LifePoint Health name and be led by William F. Carpenter III, chairman and CEO of LifePoint. It is expected to deliver pro forma 2017 revenues of more than $8 billion and will have more than 12,000 licensed beds in its portfolio, which includes 84 non-urban hospitals in 30 states.