Medical Properties Trust Inc to buy private hospital operator, Capella Healthcare Inc for $900 mln

Tuesday, July 28, 2015

Real estate investment trust Medical Properties Trust Inc said on Monday it would buy privately held Capella Holdings Inc, owner of hospital operator Capella Healthcare Inc, for $900 million in cash.

Birmingham, Alabama-based Medical Properties Trust (MPT) said the deal consists of a $600 million investment in Capella's real estate and about $300 million in a joint venture that will acquire Capella's operating entities.

The joint venture will be between Medical Properties Trust and Capella's management, the company said.

Based in Franklin, Tennessee, Capella Healthcare owns and/or operates acute care and specialty hospital facilities in six states and is one of the 10 largest for-profit acute care hospital operators in the United States based on revenue, Medical Properties Trust said.

Medical Properties said the deal would add 4 cents per share to its normalized funds from operations in the first year after the deal closes, expected in the second half of 2015.