Triad Hospitals Inc. has entered into a buyout deal with an estimated value of $6.4 billion.
The acquisition involves affiliates of two private equity firms, the company announced today. JPMorgan Chase's CCMP Capital Advisors and Goldman Sachs Capital Partners will acquire all shares of Triad stock, pending approval from shareholders.
With 54 hospitals and 13 ambulatory surgery centers in 17 states, Triad is a major hospital operation, management, and consulting company based in Plano, Texas. The deal announcement comes less than three months after shareholders of HCA Inc., the Nashville, Tenn.-based hospital chain, approved its $25 billion acquisition.
Its board of directors approved of the acquisition after receiving consent from Triad's Special Committee of disinterested directors, who were financially advised by Lehman Brothers Inc.
"After thorough and extensive analysis, the Special Committee and our board have endorsed this transaction with CCMP Capital and GSCP as being in the best interests of the company and our stockholders," said James Shelton, Triad's chairman and chief executive.
CCMP and GSCP will pay $50.25 per share under the agreement. The estimated total transaction of $6.4 billion includes assumption of Triad's $1.7 billion of debt.
Adrian Jones, managing director of GSCP, said in a press release that the equity firm shares Triad's growth plan, which includes partnerships with not-for-profit hospitals. CCMP Capital Managing Director Stephan Murray lauded Triad's "strong commitment to its patients, physicians and employees."
Triad executives said they are willing to accept better acquisition proposals for the next 40 days, during which time the companies will seek approval from shareholders and regulators. The deal is expected to close as soon as all closing conditions are met.