GTCR Announces Sale of Capella Healthcare to Medical Properties Trust
July 27, 2015
Deal underscores effectiveness of GTCR’s Leaders Strategy™ to build market-leading companies through transformational acquisitions and organic growth.
GTCR, a leading private equity firm, today announced that its portfolio company Capella Healthcare, Inc. (“Capella” or the “Company”) has signed a definitive agreement to be acquired by Medical Properties Trust, Inc. (“MPT”) (NYSE:MPW), a Birmingham, Alabama-based self-advised real estate investment trust, for $900 million in cash. The transaction is expected to close during the second half of 2015, following customary regulatory approvals.
GTCR formed Capella in partnership with founder Dan Slipkovich in 2005 to acquire acute-care hospitals that serve rural and suburban markets. Today, Capella is a premier provider of healthcare services and one of the largest for-profit hospital companies in the U.S. The company is dedicated to helping hospitals deliver a new level of healthcare for their communities through innovative market strategies, experienced leadership and capital investment to grow services and expand the regional influence of each hospital.
“We partnered with Dan Slipkovich to build a national leader in the hospital space,” said GTCR principal Josh Earl. “Over the past 18 months, we have further advanced this mission with CEO Mike Wiechart, continuing Capella’s tradition of delivering operational, clinical and financial expertise to community hospitals.”
“Since our founding back in 2005, GTCR has been an exceptional partner in helping create a company that is built to last and to make a difference in delivering high-quality care in communities across the country,” said Michael A. Wiechart, president and CEO of Capella Healthcare. “As the company moves forward, we are profoundly grateful for the leadership, guidance and financial support that GTCR has provided. Their investments have positioned the company for our next level of growth and success, which includes four additional hospitals which have chosen us as their future partner and for which diligence is currently in progress.”
“We worked in close partnership with Capella’s management team to create a unique, high-quality platform in the hospital space,” added GTCR managing director Dean Mihas. “We believe MPT is an excellent partner for Capella that will allow the business to continue to thrive and grow.”
Citi served as financial advisor and Kirkland & Ellis LLP provided legal counsel to Capella and GTCR.
Founded in 1980, GTCR is a leading private equity firm focused on investing in growth companies in the Financial Services & Technology; Healthcare; Technology, Media & Telecommunications; and Growth Business Services industries. The Chicago-based firm pioneered The Leaders Strategy™—finding and partnering with management leaders in core domains to identify, acquire and build market-leading companies through transformational acquisitions and organic growth. Since its inception, GTCR has invested more than $10 billion in over 200 companies. For more information, please visit www.gtcr.com.
About Capella Healthcare
Capella Healthcare partners with communities to build strong local healthcare systems that are known for quality patient care. Based in Franklin, Tennessee, Capella owns and/or operates acute care and specialty hospital facilities in six states. With the philosophy that all healthcare is local, Capella collaborates with each hospital’s medical staff, board and community leadership to take care to the next level. A private company, Capella has access to significant leadership and financial resources, investing 100% of its net cash flow in its family of hospitals to strengthen and expand services and facilities. For more information, visit the company’s website at www.capellahealthcare.com.
About Medical Properties Trust, Inc.
Medical Properties Trust, Inc. is a Birmingham, Alabama-based self-advised real estate investment trust formed to capitalize on the changing trends in healthcare delivery by acquiring and developing net-leased healthcare facilities. MPT, with assets approaching $5.5 billion, is the only REIT whose investment focus is solely on licensed hospitals. MPT’s financing model allows hospitals to unlock the value of their underlying real estate in order to fund facility improvements, technology upgrades, staff additions and new construction. Facilities include acute care hospitals, inpatient rehabilitation hospitals, long-term acute care hospitals, and other medical and surgical facilities. For more information, please visit the company’s website at www.medicalpropertiestrust.com.