The planned merger between Brentwood, Tennessee-based LifePoint Health Inc. and RCCH Healthcare Partners is complete, officials announced on Friday.
The deal closes just weeks after LifePoint Health’s shareholders signed off on the planned merger.
Apollo Global Management, an investment firm that owns RCCH, acquired LifePoint for $5.6 billion. The acquisition value includes about $2.9 billion in debt and minority interest. With the completion of the deal, the two companies created a joint entity with a combined $8 billion in revenue
The joint health system will operate as LifePoint and include 84 nonurban hospitals across 30 states and regional physician practices, outpatient centers and post-acute care providers. The unified system includes 7,000 physicians, 16,000 employees and 24,000 licensed beds.
LifePoint's common stock will no longer be traded on the Nasdaq effective today and will be delisted.
“We are officially one organization dedicated to providing high quality, community-based healthcare, and I am energized by the opportunities we have ahead of us to serve non-urban communities across the country,” said David Dill, who officially became CEO of LifePoint when the deal closed, in a statement.
LifePoint CEO Bill Carpenter was initially tapped to head the unified system, but he announced last month that he intended to retire after the merger was finalized. Chief Operating Officer David Dill will take over for Carpenter.
Carpenter and three other executives were set to receive $121 million in golden parachute payments upon leaving LifePoint, but the shareholders voted against providing that compensation.
RELATED: LifePoint shareholders approve RCCH merger, nix executives’ golden parachutes
LifePoint’s headquarters will remain in Brentwood, Tennessee. John Bumpus will serve as executive vice president of administration, Michael Coggin is the executive vice president and chief financial officer and Victor Giovanetti is executive vice president of hospital operations,
Former LifePoint Health Chairman and CEO William F. Carpenter III and former RCCH HealthCare Partners CEO Marty Rash will remain engaged in the organization as members of the board.
LifePoint shareholders are receiving $65 per share in cash for each share of LifePoint’s common stock they owned, a premium of approximately 36% to LifePoint’s closing share price on July 20.
RELATED: LifePoint Health, RCCH HealthCare Partners announce merger plans
Financing was provided by Barclays, Citigroup, RBC Capital Markets, Credit Suisse, Deutsche Bank Securities and UBS Investment Bank. PSP Investments Credit USA LLC and an affiliate of Qatar Investment Authority have also provided a portion of the debt financing. The financing also included an equity contribution from funds managed by Apollo and other co-investors.
Goldman Sachs & Co. LLC served as financial adviser and White & Case LLP served as legal adviser to LifePoint Health. Barclays and MTS Health Partners, L.P., served as financial advisers to RCCH. Akin Gump Strauss Hauer & Feld LLP, Paul, Weiss, Rifkind, Wharton & Garrison LLP and Sidley Austin LLP served as legal advisers.