Dive Brief:
- Medical Properties Trust Inc., an Alabama-based real estate investment trust, has signed a definitive agreement with Capella Holdings Inc. to acquire Capella for $900 million.
- The transaction, which is still subject to regulatory approvals, is expected to be finalized by the end of the year.
- A management company that is jointly owned by Capella senior management and MPT will operate and manage the hospital business while MPT acquires Capella's real estate interests.
Dive Insight:
Capella, which is one of the largest for-profit hospital companies in the U.S., is presently owned by funds affiliated with GTCR, a leading private equity firm.
MPT was formed to capitalize on the changing trends in healthcare delivery by acquiring and developing net-leased healthcare facilities. With assets approaching $5.5 billion, MPT is the only REIT whose investment focus is solely on licensed hospitals.
"We are delighted to have earned the confidence of Capella Healthcare as it further expands its footprint across the country," Edward K. Aldag, Jr.,MPT's Chairman, President and Chief Executive, said in a statement. "MPT's highly successful investment of real estate capital in the hospital business has allowed us to carve a unique niche in the largest and fastest-growing segment of the U.S. economy as we continue to focus exclusively on providing capital to licensed hospitals of all kinds."