Foundation HealthCare Affiliates, an ambulatory surgery center and surgical hospital management and development company, is set to be acquired by SunLink Health Systems, operator of community hospitals and related nursing home and home care businesses in the Southeast and Midwest, according to a news release.
SunLink would acquire Foundation with approximately 1.56 million SunLink common shares and other securities in a non-cash merger.
The combined company expects to change its name to Foundation SunLink Healthcare Affiliates.
Commenting jointly on the proposed merger, SunLink Chairman and CEO Robert M. Thornton Jr., and Foundation Chairman and CEO Thomas Michaud said, in the news release, "This unique transaction provides for the combination of two concerns long dedicated to providing superior health care facilities and services in their respective markets. The combined company will have a clear focus, greater resources and a much broader reach in the new healthcare marketplace, from both a geographic and scope of services perspective, and will be better poised to take advantage of the exciting opportunities presented by the alignment of high quality physicians and efficient, supportive operating facilities in today’s healthcare landscape."
The subsidiaries and affiliates of Foundation to be merged in the acquisition own minority equity interests in and manage 14 ASCs in seven states (Louisiana, Maryland, New Jersey, Ohio, Oklahoma, Pennsylvania and Texas), own a majority interest in and manage one general acute care hospital and manage a second acute care hospital, both of which are located in Texas.
It is anticipated that the new company will focus on growth through physician-centric hospitals, ASCs and related ancillary service providers, including its existing hospitals and ASCs, plus the acquisition and development of additional physician-centric hospitals, ASCs and ancillary service providers nationwide, according to the release.
Read the news release about the acquisition by SunLink of Foundation HealthCare Affiliates.
Read about other ASC transactions:
- AmSurg to Acquire National Surgical Care for $173.5M
- NovaMed to Be Acquired by Surgery Partners, Go Private
- ASC Transactions and Pricing During 2010: 4 Key Concepts