FRANKLIN, Tenn. and BRENTWOOD, Tenn., May 2, 2016 /PRNewswire/ -- RegionalCare Hospital Partners Inc. ("RegionalCare") and Capella Healthcare, Inc. ("Capella"), both privately-owned premier providers of health care services, today announced the successful completion of the previously announced merger between the two companies. The new combined company has 16 regional health systems in 12 states with more than 13,000 employees, 2,000 affiliated physicians and $1.7 billion in revenues. Day-to-day operations at the companies' affiliated hospitals will not be impacted by the parent-company-level transaction. The combined company will do business under the name RCCH HealthCare Partners.
Marty Rash, former Board Chair and CEO of RegionalCare, has assumed the role of Executive Board Chair for the combined company. Michael Wiechart, former Board Vice-Chair and President and CEO of Capella, has assumed the role of President and CEO for the combined company. He has also joined the company's Board of Directors.
"This is an exciting day for our companies and the communities we serve," said Rash. "In today's increasingly challenging healthcare environment, it is imperative that like-minded organizations work together to improve access to high quality healthcare and provide continued access to care for patients and their families."
"We look forward to building on the legacy of care our hospitals have provided in great communities throughout the country, said Wiechart. "With this merger, we've created an outstanding new company with increased resources to improve the health and well-being of communities we serve now as well as future new partners."
"We are very excited about the outlook for RCCH HealthCare Partners," said Matthew Nord, a Partner at Apollo Global Management, LLC. "The combination of RegionalCare and Capella creates a care provider truly focused on the patients it serves with meaningful growth opportunities in both existing and new communities."
Financing was provided by Barclays, Royal Bank of Canada, Deutsche Bank, Credit Suisse, UBS, Citigroup, and SunTrust. In addition, senior unsecured notes were privately placed with PSP Investments Credit USA LLC and other investors. Barclays served as financial advisor to RegionalCare. Akin Gump Strauss Hauer & Feld LLP and Paul, Weiss, Rifkind, Wharton & Garrison LLP served as RegionalCare's legal advisors. Kirkland & Ellis served as Capella's legal advisor.
Apollo Global Management, LLC (NYSE: APO) (together with its consolidated subsidiaries, "Apollo") is a leading global alternative investment manager with offices in New York, Los Angeles, Houston, Chicago, Bethesda, Toronto, London, Frankfurt, Madrid, Luxembourg, Mumbai, Delhi, Singapore, Hong Kong and Shanghai. Apollo had assets under management of approximately $170 billion as of December 31, 2015 in private equity, credit and real estate funds invested across a core group of nine industries where Apollo has considerable knowledge and resources. For more information about Apollo, please visit www.agm.com.
About Capella Healthcare, Inc.
Founded in 2005, Capella Healthcare partners with communities to build strong local healthcare systems that are known for quality patient care. Based in Franklin, Tennessee, Capella operates 10 acute care and specialty hospital facilities in five states. For more information, visit the website at www.CapellaHealthcare.com.
About RegionalCare Hospital Partners Inc.
Founded in 2009, RegionalCare Hospital Partners is a growing system of community hospitals focused on a commitment to high quality care and expanding health care services in non-urban markets. Today, RegionalCare is partnered with eight, market-leading, community hospitals in seven states. More information can be found at www.regionalcare.net.
SOURCE RegionalCare Hospital Partners Inc.