CCMP, Goldman in $6.4bn hospitals deal

The two private equity firms have teamed up to take private Texas-based hospital operator Triad Hospitals.

CCMP Capital Advisors, a spinout of JPMorgan Partners, and GS Capital Partners, the private equity division of Goldman Sachs, have jointly invested about $6.4 billion (€4.95 billion) in Triad Hospitals, a US hospital and surgery center operator. The transaction value includes about $1.7 billion of debt.

Shareholders will receive $50.25 in cash per share, Triad said in a statement.

Triad operates 54 hospitals and 13 ambulatory surgery centers in 17 states. Its subsidiary QHR provides hospital management, consulting and advisory services to community hospitals and other centers in the US, the statement said. The company trades on the New York Stock Exchange under the ticker symbol TRI.

The transaction agreement includes a termination fee under which Triad must pay the two firms a $20 million break up fee and must reimburse up to $20 million of their expenses should the company choose to pursue a separate deal. Triad may solicit other proposals for the next 40 days.

The announced acquisition of Triad follows another notable hospital deal that closed in November. Bain Capital, Kohlberg Kravis Roberts and Merrill Lynch Global Private Equity bought HCA, an owner and operator of hospitals and surgery centers, for approximately $33 billion. HCA’s management and its founder, Thomas Frist, also took part in that deal.