Breaking News: HCA going private

July 24, 2006

HCA owns West Florida Hospital.

HCA agrees to be taken private in $33 billion deal

HCA, Nashville, will be acquired by founder Thomas Frist Jr., members of management and private equity investors in a deal valued at $33 billion, including the assumption of $11.7 billion in debt.

The private equity investors are Bain Capital, Kohlberg Kravis Roberts & Co. and Merrill Lynch Global Private Equity. HCA shareholders will receive $51 per share, an 18% premium over the closing price last Tuesday, before news of a possible buyout was reported.

The buyout requires shareholder approval and expiration of the 30-day waiting period under the federal Hart-Scott-Rodino antitrust law. HCA also has 50 days to solicit better offers.

If the deal goes forward as planned, it will close in the fourth quarter. Separately, HCA reported second-quarter profits of $295 million, down 27% from the year-ago quarter.

Overall volume was stagnant for the quarter, with an increase in inpatient admissions offset by a decline in hospital-based outpatient surgeries. HCA owns and operates 176 hospitals and 92 freestanding outpatient centers.

Note: Going private will help Sen. Frist keep its finances private should he run for president in 2008.


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