LifePoint Health Inc (NASDAQ: LPNT) rose sharply Monday after the company agreed to be acquired by Apollo’s RCCH HealthCare Partners for $65 per share in cash.
LifePoint, based out of Brentwood, Tennesseer and RCCH HealthCare Partners, which is owned by certain funds managed by affiliates of Apollo Global Management, LLC (NYSE: APO), today announced that they have entered into a definitive agreement to merge.
Upon closing of the transaction, LifePoint shareholders will receive $65.00 per share in cash for each share of LifePoint common stock they own, resulting in a LifePoint enterprise value of approximately $5.6 billion, including $2.9 billion of net debt and minority interest. The purchase price represents a premium of approximately 36% to LifePoint’s closing share price on July 20, the last trading day prior to the announcement
LifePoint and RCCH are among the nation’s leading health-care providers, owning and operating networks of hospitals, post-acute service providers and outpatient centers that are integral to their communities. Both companies share a commitment to providing high quality care to regional markets.
Said CEO William Carpenter III said, "LifePoint and RCCH are aligned in our missions and commitment to ensuring that non-urban communities across the country have access to quality care, close to home.
"Together, we can extend this shared focus while generating new opportunities for growth and partnerships that will help us navigate the changing healthcare industry dynamics. I am eager to work with the outstanding teams at LifePoint and RCCH as we continue advancing high quality patient care and making communities healthier."
LPNT shares hiked $16.17, or 33.8%, to $64.08, while Apollo Global doffed 15 cents to $35.26
