Funds affiliated with asset manager Apollo Global Management LLC (NYSE: APO) are buying RegionalCare Hospital Partners Inc. from Warburg Pincus for an undisclosed amount.
RegionalCare, headquartered in Brentwood, Tennessee, owns and operates eight suburban hospitals in Alabama, Arizona, Connecticut, Iowa, Montana, Ohio and Texas.
"This significant investment will allow us to continue to expand the high quality health care services we provide in seven states across the country and also provide us with the financial resources required to serve new communities and regional markets," says RegionalCare CEO Marty Rash.
RegionalCare has been backed by New York-based Warburg Pincus since 2009, when the firm partnered with Rash to form the company. The company acquired Essent Healthcare in 2011, a hospital operator.
UBS Investment Bank (NYSE: UBS) was RegionalCare's financial adviser, while Willkie Farr & Gallagher LLP and Waller Landsden Dortch & Davis LLP provided financial advice. Barclays and Citi were Apollo's financial advisers, and Akin Gump Strauss Hauer & Feld LLP with Paul Weiss Rifkind Wharton & Garrison LLP were legal advisers.
Dealmaking in the health care sector has remained active for years. In October, Compassus agreed to buy Sentinel Capital-backed Hospice Advantage, which provides hospice and other health care services. Earlier this year HealthSouth Corp. (NYSE: HLS) bought Reliant Hospital Partners, which operates inpatient rehabilitation hospitals, for $730 million.
Dealmakers are expecting health care M&A to continue to grow, but not as quickly as before, according to Mergers & Acquisitions Mid-Market Pulse.