Steward Health Care Goes to the Docs

Steward Health Care Goes to the Docs

by | Jun 8, 2020 10:11 am | Hospitals

The largest privately held hospital chain in the United States is now owned by a group of physicians who practice there. Steward Health Care System LLC was sold by its founding owner, Cerberus Capital Management, to a management group of Steward Health Care physicians led by the company’s CEO and founder, Dr. Ralph de la Torre. Dr. de la Torre, a cardiac surgeon, was tapped to run Steward’s predecessor, the six-hospital Caritas Christi Health Care in Boston, in April 2008. The current deal was structured as a recapitalization, with no additional leverage added to Steward’s balance sheet and Cerberus’ controlling interest was exchanged for a convertible note. The new... Read More »
PaxVax Changes Hands Again

PaxVax Changes Hands Again

by | Aug 17, 2018 3:03 pm | Pharmaceuticals

Specialty vaccine maker PaxVax Inc. has changed owners again, more than doubling its equity value in two and a half years. The Redwood City, California-based company was acquired by Cerberus Capital Management in December 2015 for $105 million from Ignition Growth Capital and other investors. The sellers retained a minority stake, while Cerberus took the majority. In August, the company was sold to Emergent BioSolutions Inc. (NYSE: EBS), which develops and commercializes specialty products for use in biodefense and commercial markets. Emergent paid $270 million, 3.4x revenue, based on statements that the target’s 2019 revenues are expected to be between $70 million and $90 million.... Read More »

U.S. Hospital Deals Holding Steady

by | Aug 18, 2017 3:27 pm | Hospitals, Private Equity

Seven months into 2017, hospital mergers and acquisitions in the United States are slow and on the smaller side. Even with Community Health System’s (NYSE: CYH) ongoing divestiture announcements, just 51 transactions have been announced through August 1. In all of 2016, 84 transactions for U.S. hospitals were announced. With five months to go, that’s a target this sector could meet or even surpass, but that’s not a very high bar to reach, considering there were 96 deals for U.S. hospitals announced in 2015. Spending on this year’s hospital deals has been anemic. Through August 1, almost $2.3 billion has been spent on mostly private hospital transactions, with the largest, at $1.4 billion,... Read More »

Hospital Deals Rebound in May 2017

by | May 26, 2017 5:24 pm | Hospitals, Private Equity

Hospital merger and acquisition activity was fairly quiet in the first four months of the year, totaling 24 deals that made to a definitive agreement or beyond. Then came May, with a combined total of 13 transactions announced in the first four weeks (through May 26). Deal volume in the hospital sector through May 26 now totals 37 transactions, targeting 79 hospitals with 13,854 beds. The nearly $2.3 billion combined spending includes the $1.4 billion just announced by Medical Properties Trust (NYSE: MPW), which acquired the real estate assets of 10 acute care hospitals and one behavioral health facility (approximately 2,400 beds) belonging to IASIS Healthcare, a TPG portfolio company.... Read More »

Steward Health Buys 8 Community Health Hospitals

by | Feb 17, 2017 4:49 pm | Hospitals, Private Equity

It’s no secret that Community Health Systems (NYSE: CYH) is selling off hospitals and medical office buildings to pay down its $15 billion debt. Its latest deal offloads eight hospitals with a total of 1,818 beds in Florida, Ohio and Pennsylvania to Steward Health Care LLC for an undisclosed price. The hospitals involved in this deal are Wuesthoff Health System-Melbourne (119 beds) in Melbourne, Wuesthoff Health System-Rockledge (298 beds) in Rockledge, and Sebastian River Medical Center (154 beds) all in Florida; ValleyCare Health System of Ohio, which consists of Northside Medical Center (355 beds) in Youngstown, and Trumbull Memorial Hospital (311 beds) and Hillside Rehabilitation... Read More »