Community Health Systems, Franklin, Tenn., has agreed to a $6.8 billion acquisition of Triad Hospitals, Plano, Texas, trumping an offer made last month by two private equity groups valued at $6.4 billion.
If the deal is completed, Community would become the second-largest investor-owned hospital company, with about 130 hospitals in 28 states. In order for the deal to close, it must receive Hart-Scott-Rodino antitrust approval from the Federal Trade Commission. Triad shareholders also would have to vote for the deal.
The directors of both companies already have approved Communitys offer of $5.1 billion in cash ($54 per share) and the assumption of $1.7 billion in Triad debt. Community said it expects to close the deal in the third quarter of this year. The deal was announced by the companies in a joint news release. -- by Vince Galloro