SunLink Health Systems, Atlanta, and certain units of Foundation Healthcare Affiliates have decided not to go forward with a proposed merger because of “differences in the parties' respective business models, philosophies and operating assets,” according to a SunLink news release.
SunLink, Foundation units drop proposed merger
When the deal was announced in April, SunLink proposed to issue securities to Oklahoma City-based Foundation Healthcare worth nearly $43 million, plus 3 million stock warrants.
In lieu of the deal with Foundation Healthcare, SunLink plans to make investments at its existing six hospitals and pursue hospital acquisitions, said Robert Thornton, chairman and CEO, according to the news release.
SunLink also reported its results for the quarter ended Sept. 30, its fiscal 2012 first quarter. The company reported a loss of $318,000, versus a loss of $2.8 million in fiscal 2011's first quarter, according to its earnings release. Revenue increased 5.4%, to $43.1 million. Earnings before interest, taxes, depreciation and amortization improved for its healthcare facilities to $3.3 million, from $458,000 in the year-ago quarter. EBITDA for its specialty pharmaceutical business, however, swung to a loss of $46,000, from a gain of $183,000 in the year-ago quarter.
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