- Real estate investment firm Ventas Inc. announced Monday morning that it will acquire Ardent Medical Services, the parent company of 10 for-profit hospitals in Oklahoma, Texas and New Mexico, for $1.75 billion in cash.
- Based in Nashville, Ardent Health Services is owned by private equity funds managed by Welsh, Carson, Anderson & Stowe. The company generates around $2 billion in annual revenues, with 50% of its revenue derived from commercial payers.
- Following closure of the deal, which is expected in mid-2015, Ventas says it will separate Ardent Health Services' hospital operations from its real estate and sell operations to newly-formed entities managed and owned by Ardent and other equity sources. Ventas may own up to 9.9% of the new company.
Ardent management says that the infusion of cash will help the hospital operator expand its presence and grow into new markets.
"We look forward to expanding Ardent and capitalizing on the significant growth opportunities we see in the immense, highly fragmented US hospital market," Ardent CEO David T. Vandewater said in a release. "With this strong capital and operating partnership, we can expand while continuing to serve patients and our communities."
Ardent hospitals operate as BSA Health System in Amarillo, TX, Hillcrest HealthCare System in Tulsa, OK and Lovelace Health System in Albuquerque, NM.