Investors Richard Rainwater and his wife, Darla Moore, have agreed to buy a 12.3% stake in the nation's largest chain of psychiatric hospitals for $69.7 million.
The couple will acquire 4 million newly issued shares and warrants to purchase an additional 2 million shares of Magellan Health Services, Atlanta. Magellan formerly was called Charter Medical Corp. It changed its name last month when it merged with Green Spring Health Services, a managed mental health company based in Columbia, Md. The newly merged company is expected to have 1996 revenues of $1.4 billion.
Moore is a director of Columbia/HCA Healthcare Corp. The Nashville, Tenn.-based chain operates 337 hospitals. Rainwater is a former director who helped found Columbia with President and Chief Executive Officer Richard Scott in 1987.