Saturday, November 14, 2015
Funds affiliated with Apollo Global Management, LLC is buying RegionalCare Hospital Partners Holdings, Inc., the parent company of RegionalCare Hospital Partners Inc. While terms of the transaction have not yet been divulged, the deal is expected to close before the end of 2015.
RegionalCare partners with regionally focused community hospitals in non-urban markets across the U.S., with an aim to provide high-quality healthcare services in these regions. Presently, the company owns and operates 8 hospitals spread across the states of Arizona, Alabama, Ohio, Iowa, Montana, Connecticut and Texas.
With this acquisition, Apollo seeks to invest "in the next chapter of the company's growth". Notably, Apollo's investment will finance RegionalCare's plans to develop and further expand its footprints in non-urban areas.
According to Mathew Nord, one of the partners at Apollo, RegionalCare's growth story continues on the back of its strong regional presence and operational excellence. More importantly, Nord sees the healthcare space as "one of the largest and most dynamic sectors of the economy".
Given that RegionalCare is also a portfolio company of Warburg Pincus LLC, a global private equity firm that invests in growth companies, we remain encouraged about the company's prospects. As such, we expect Apollo to benefit from its latest acquisition.
Further, this transaction is not expected to affect the daily operations at RegionalCare's facilities. Additionally, Barclays PLC BCS and Citigroup Inc. C served as financial advisors for Apollo.
Separately, Apollo has been in the headlines this week for changes in its previously announced deals. Notably, the company modified the terms of an agreement with RCS Capital Corporation (RCAP), while an acquisition deal with real estate firm AR Capital, LLC was mutually terminated (read more: Apollo Amends RCS Capital Deal, Ends AR Capital Deal ). The stock has fallen 3.3% to $17.92 per share since Monday, Nov 9.
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