RehabCare Announces $575M Merger with Triumph HealthCare
RehabCare Group, Inc., completed its merger today with Triumph HealthCare Holdings, Inc., a long-term, acute-care hospital (LTACH) chain, in a transaction valued at $575 million.
The combined organization will provide post-acute services in more than 1,280 locations in 41 states and becomes the fourth-largest, post-acute hospital operator and the third largest LTACH provider in the nation.
"Our merger with Triumph is a winning combination, and we are excited to begin the process of blending our strengths to elevate the role of our hospital division and achieve a more diverse company with the potential to reach more patients in need of specialized, restorative care," said John H. Short, RehabCare president/CEO, in a media release. "We look forward to integrating our best practices, technologies and the talents of our now more than 18,000 people as we work toward a common goal of helping people regain their lives."
The transaction is being financed through a combination of committed bank financing, the net proceeds of the equity offering that closed on Nov.18, and cash on hand. RehabCare also closed on a new senior secured credit facility consisting of a $450 million term loan B facility and a $125 million revolving credit facility.
Triumph HealthCare President/COO Brock Hardaway will lead the combined company's LTACH business, under the direction of Kevin Gross, RehabCare's senior vice president of hospital operations.
Houston-based Triumph HealthCare operates 20 LTACHs in seven states, with two hospitals scheduled to be added by mid-2010.
St. Louis-based RehabCare manages rehabilitation programs at more than 1,250 hospitals and skilled nursing facilities in 41 states, and owns and operates 33 rehabilitation and long-term acute care hospitals.