Long-term care providers Triumph HealthCare, Houston, and St. Louis-based RehabCare Group announced a definitive agreement to merge, according to a joint news release from both companies.
The transaction was valued at $570 million, subject to adjustment, according to a separate statement from RehabCare. The transaction is expected to close on or about December 1, 2009, pending customary closing conditions, including regulatory approvals.
The newly combined organization will operate 29 long-term care hospitals and six inpatient rehabilitation facilities in 13 states. Brock Hardaway, president and COO of Triumph, will manage the combined LTAC hospital business, the companies said. Still subject to closing conditions, including certain regulatory approvals, the deal is expected to close on or around Dec. 1.
“Our long-stated strategy has been to accelerate the growth of our hospital operations through acquisition,” John Short, president and CEO of RehabCare Group, said in the release. “This will give us immediate scale and allows us to integrate the best practices of Triumph, an industry leader in the management of long-term acute care hospitals.”
RehabCare Group, a publicly traded company that was established in 1982, introduced its hospital division in 2005. It currently has partnerships with more than 1,250 hospitals, skilled nursing facilities and other long-term care facilities.
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