Plano, Texas – Triad Hospitals Inc. said Monday it agreed to be taken private in a $4.7 billion sale to an affiliate of Goldman Sachs and a firm spun off from JPMorgan Chase & Co.
The Triad announcement comes on the heels of hospital giant HCA Inc.’s sale to private owners.
The hospital industry is struggling with flat volume and rising numbers of unpaid bills from uninsured patients. Triad said Monday its provision for “doubtful accounts” would equal one- eighth of its revenue in the fourth quarter and cut into earnings.
Still, analysts said, hospital companies generate huge amounts of cash, making them attractive buyout targets.
Triad agreed to be purchased for $50.25 per share, a 16 percent premium over Triad’s closing stock price Friday. The buyers, affiliates of CCMP Capital Advisors and GS Capital Partners, will also assume $1.7 billion in debt.
Shares of Triad rose $6.38, or 14.7 percent, to close at $49.65 on the New York Stock Exchange.
Triad’s board has recommended that stockholders approve the arrangement. The sale is subject to regulatory approvals, but there are no financing conditions, the companies said.
