Medical Properties Trust, Inc. has announced, in a press release, that it has entered into a "definitive agreement" to acquire Capella Holdings, Inc. for $900 million in cash.
The $900 million agreement will compose of $600 million in investment to Capella's real estate and an approximate $300 million investments in Capella's operating entities.
The acquisition provides Medical Properties, self-advised real estate investment trust formed to capitalize on the changing trends in healthcare, access to Capella's acute care portfolio of seven hospitals located in five states, according to the company's press release.
"The acquisition of Capella, which in a single stroke accretively increases our portfolio of high quality hospital real estate by almost 20%, is simply the next step along our track record of creating strong double-digit growth," Edward K. Aldag, Jr., Chairman, President and CEO of Medical Properties Trust, Inc. said in the press release.
He added that the acquisition of Capella shows, "MPT remains the undisputed go-to source when hospital operators are considering the most efficient means to access low-cost capital while retaining operating control to execute their growth strategies."
Aside from seven hospital real estates, Medical Properties also gets a new operator relationship in Capella, the press release states.
Capella, one of the ten largest for-profit acute care hospital operators in the U.S., has a proven management team and strategy in expanding into non-primary markets. The combination has resulted in market leadership positions for the company.
"Medical Properties Trust brings to the table significant expertise in healthcare real estate, efficient access to capital markets and, most importantly, a company culture that is compatible with Capella's mission, vision, and values," said Michael A. Wiechart, President and CEO of Capella in in their own press release published in PR Newswire.
Combined with Capella's outstanding expertise in operating hospitals, MPT's long-term investment, and commitment will be invaluable in helping us achieve our primary goals of patient care excellence and partnering with new communities," he added.
Medical Properties said that the deal will immediately add 4 cents per share to the company's normalized funds from operations in the first year after the deal closes.
The deal is expected to close in the second half of 2015.
