Wuesthoff Sells To Community Health Systems
By Space Coast Daily // July 30, 2013
deal expected to close March 30
BREVARD COUNTY, FLORIDA – The parent company of Wuesthoff Health System, Health Management Associates, was acquired today by Community Health Systems.
Wuesthoff Health System has hospitals in Rockledge and Melbourne in Brevard, and Health Management Associates also operates Sebastian River Medical Center in Indian River County.
Under the terms of the deal, Community Health Systems will assume approximately $3.7 billion of indebtedness from Health Management Associates. Community Health will pay $10.50 a share in cash and 0.06942 of a share for each share of HMA. That values the takeover bid at about $13.78 a share, based on Monday’s closing stock prices.
“This compelling transaction provides a strategic opportunity to form a larger company with a diverse portfolio of hospitals that is well positioned to realize the benefits of health care reform and to address the changing dynamics of our industry,” said Wayne T. Smith, chairman, president and CEO of CHS.
“This compelling transaction provides a strategic opportunity to form a larger company with a diverse portfolio of hospitals that is well positioned to realize the benefits of health care reform and to address the changing dynamics of our industry,” said Wayne T. Smith, chairman, president and CEO of CHS.
“Our complementary markets and the ability to form networks in key states, along with the synergies that will be available to us, can create value for the shareholders of our companies, the communities we serve, our employees and medical staffs. We look forward to working with the physicians and employees of HMA to advance the commitment shared across both organizations to pursue clinical excellence and to deliver quality care for patients.”
“This agreement represents the successful conclusion of the strategic review process that our Board of Directors commenced at the end of last year, during which we evaluated several alternatives, including remaining independent and potential transactions with other strategic parties,” said William J. Schoen, chairman of the Board of HMA.
The transaction will create a for-profit hospital system with 206 hospitals in 29 states – many of which are in rural areas.
“This agreement represents the successful conclusion of the strategic review process that our Board of Directors commenced at the end of last year, during which we evaluated several alternatives, including remaining independent and potential transactions with other strategic parties,” said William J. Schoen, chairman of the Board of HMA.
“Shareholders will receive immediate value in cash, as well as CHS stock that will allow them to participate in the future growth of a true industry leader. We are pleased that this combination will create an even stronger organization for the benefit of our patients, physicians, associates and the communities we serve,” Schoen added.
The deal is expected to close by March 30 of next year, pending approval by 70 percent of Health Management Associates’ shareholders and by regulators.
