Steward Health Care Buys 18 Hospitals From TPG For $2B
After 13 years of ownership, TPG is selling hospital chain Healthcare Corp. to Steward Health Care System for $2B.
Steward is backed by private equity firm Cerberus Capital Management, which also owns Albertsons and Staples. The sale transfers ownership of 18 hospitals in Texas, Colorado, Arizona, Arkansas, Utah and Louisiana, Bloomberg reports. Steward has already agreed to sell and lease back many of the hospitals in the portfolio to Medical Properties Trust Inc., a REIT based in Alabama.
The deal is expected to close in Q3 and will make Steward the biggest private for-profit hospital operator in the U.S., according to a company statement. A person familiar with the matter told Bloomberg the sale will net TPG a 50% gain on its original $434M equity investment in Iasis. The company bought Iasis back in 2004 for $1.4B.