Medical Properties Trust Inc. (NYSE: MPW) is spending $900 million to buy GTCR’s Capella Healthcare Inc., a for-profit hospital business.

Chicago private equity firm GTCR formed Capella in partnership with chairman and long-time hospital executive Dan Slipkovich in 2005 to buy acute-care hospitals in rural and suburban markets. Now, the Franklin, Tennessee-based business owns locations in six states.

The partnership with Slipkovich is consistent with GTCR’s the Leaders Strategy, under which it partners with industry executives to build companies. The deal closely follows GTCR’s sale of AssuredPartners Inc., an insurance company the firm built in conjunction with CEO Jim Henderson and COO Tom Riley. GTCR announced it was selling the insurer to New York PE firm Apax Partners on July 20.

The Leaders Strategy is one of the reasons the firm was named Mergers & Acquisitions M&A Mid-Market Private Equity Firm of the Year for 2013. Before the AssuredPartners transaction, GTCR announced it was also selling Cord Blood Registry to Amag Pharmaceuticals Inc. (Nasdaq: AMAG) for $700 million. GTCR had partnered with life sciences executive Geoffrey Crouse to buy the blood cell and tissue preservation business in 2012. GTCR, in June, picked up pharmacy-management software Rx30 in partnership with CEO Steve Wubker.

Birmingham, Alabama-based Medical Properties is a real estate investment trust (REIT). The business plans to buy more care facilities as a means to capitalize on changes in the health care system.

Citi provided financial advice, and Kirkland & Ellis LLP provided legal counsel to Capella and GTCR.

The Affordable Care Act has drummed up all kinds of M&A in the health care sector. Recent transactions include IPC Healthcare Inc.’s (Nasdaq: IPCM) purchase of two physician groups – Arcwell Medical and Innovative PsyciatriCare – in June, and HealthSouth Corp.’s (NYSE: HLS) $730 million deal for Reliant Hospital Partners.

For more on health care M&A, read 5 Technologies that Drove Health Care M&A in 2014 and ACA Reshuffles the Deck.

Subscribe Now

Complete access to real-time information and analysis of news and trends in the industry.

14-Day Free Trial

No credit card required. Complete access to articles, breaking news and industry data.