Real estate investment trust Ventas, Equity Group Investments and Nashville, Tenn.-based Ardent Health Services have completed their previously reported transactions.
Here are six things to know about the transactions.
1. Ventas has completed its acquisition of AHS, and an EGI affiliate has completed its majority investment in a newly capitalized hospital operating company, which will continue to be branded "Ardent." The transactions were announced April 6 and July 7, respectively.
2. At closing, Ventas separated AHS' owned real estate from its hospital operations, folding the real estate into the Ventas portfolio, and spinning off AHS' hospital operations into a separate entity called Ardent. Concurrently, an EGI-controlled entity acquired a majority stake in the operations company, while Ventas retained a 9.9 percent interest and AHS management retained a significant ownership stake.
3. Ardent's management team, under president and CEO David Vandewater, will continue to lead the operating company.
4. Ardent will continue to provide healthcare services in the following service areas: Amarillo, Texas; Tulsa, Okla., and Albuquerque, N.M. The portfolio includes 14 hospitals and three multi-specialty physician groups.
5. Ardent, which currently generates about $2 billion in annual net revenue, will remain based in Nashville with no expected changes to its current operations.
6. Ventas Chairman and CEO Debra A. Cafaro expressed enthusiasm about the deal. "We are pleased to have completed our acquisition of Ardent Health Services, a top 10 U.S. hospital operator with a strong financial and operating profile," she said in a news release. "We are also delighted that EGI will be the majority owner of the operating company. With Ardent’s experienced, well-respected management team and scalable platform, and EGI as our partner, we are confident we can build a formidable business in the U.S. hospital industry."
Sam Zell, chairman of EGI, and Mr. Vandewater shared Ms. Cafaro's enthusiasm. Mr. Zell said the combination of Ventas, Ardent and EGI "creates an exceptional platform to deliver best-in-class health care services to Ardent's patients," while Mr. Vandewater said, "We look forward to continuing to serve our existing patients, physicians, employees and communities, and we are excited about the prospects of entering new markets with our new capital partners."
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