Community Health Systems, Franklin, Tenn., said it has completed its $6.8 billion acquisition of Triad Hospitals, Plano, Texas. Communitys bid of $54 per share in March overwhelmed a $50.25 per share offer that two private equity groups made for Triad in February.
The deal makes Community the largest publicly traded hospital company with about $10 billion in annual revenue and 132 hospitals, and the second-largest investor-owned hospital company. Privately held HCA, Nashville, is still the largest hospital company, with 165 hospitals and 109 free-standing surgery centers in the U.S., and more than $25.5 billion in revenue in 2006.
The deals completion also marks the end of Triad Hospitals as an independent company after eight years. Triad, like LifePoint Hospitals, Brentwood, Tenn., was spun off from HCA in May 1999. Triad completed its own large acquisition in 2001, when it purchased Quorum Health Group, Brentwood, which was also an HCA spinoff. Eventually, many employees from Triads Plano headquarters will move to Communitys Nashville-area offices, Community has said.
Community also completed a refinancing involving a $7.22 billion credit facility and $3.02 billion in new notes, the company said. -- by Vince Galloro