Tenet Acquiring Vanguard Health in Deal for $1.8 Billion

Vanguard Health Systems, a hospital operator, will be acquired by Tenet Healthcare Corp, for an estimated $1.8 billion so Tenet can expand into more hospitals in Texas.

The deal will have Tenet paying $21 per share, said the companies in a joint statement. The $21 price is 70% above the closing price as of June 21 of $12.37 on NYSE for Vanguard, based in Nashville, Tennessee. Tenet will also assume debt for Vanguard of over $2.5 billion.

The acquisition by Tenet, based in Dallas, Texas, will give it 28 hospitals in different regions of the country including Boston, Chicago, Detroit, Phoenix and in the metropolitan area of San Antonio.

The two companies combined into one will operate 157 outpatient facilities and 79 hospitals and through consolidation will save up to $200 million annually. Both companies said the deal will add to Tenet’s earnings in the first year of the acquisition.

The acquisition will be financed by Bank of America and would most likely close before the end of 2013, said both companies.

Vanguard Health has increased by 1% during 2013, compared to an increase of the Russell 2000 Health Index of 19%.

Both companies announced that more details over the terms and conditions of the sale would be forthcoming.



Latest News

Comparing Anaplan  & Its Rivals
Comparing Anaplan & Its Rivals
Head to Head Review: Twenty-First Century Fox  & TEGNA
Head to Head Review: Twenty-First Century Fox & TEGNA
Critical Comparison: Docusign  and Its Rivals
Critical Comparison: Docusign and Its Rivals
Principal Financial Group Inc. Cuts Position in Blackstone Mortgage Trust Inc
Principal Financial Group Inc. Cuts Position in Blackstone Mortgage Trust Inc
Insmed Incorporated  Shares Sold by Principal Financial Group Inc.
Insmed Incorporated Shares Sold by Principal Financial Group Inc.
Kelly Lawrence W & Associates Inc. CA Has $174,000 Position in United Technologies Co.
Kelly Lawrence W & Associates Inc. CA Has $174,000 Position in United Technologies Co.


© 2006-2019 Ticker Report