By MATT BLOIS
The Brentwood-based healthcare companies LifePoint Health and RCCH HealthCare Partners announced plans to merge on Monday morning.
The new company will be called LifePoint Health, and will become privately held after the sale is complete. LifePoint Health is currently a publicly held company. RCCH HealthCare is owned by the publicly traded company Apollo Global Management.
If the merger is approved, LifePoint shareholders will receive $65 per share. That adds up to $5.6 billion for all of LifePoint’s shares.
The deal includes $2.9 billion of debt and minority interest. The transaction will be completed during the next several months and will need to be approved by LifePoint’s shareholders.
According to a press release, LifePoint’s $5.6 billion price tag is 36 percent higher than the value of all of the company’s shares at the end of the day on Friday, the last trading day before the announcement.
The new company will be led by LifePoint’s current CEO William F. Carpenter III. The company’s headquarters will remain in Brentwood. A press release didn’t specify exactly where the new company would be.
The headquarters for RCCH is located in Brentwood near the intersection of Maryland Way and Granny White Pike. The headquarters for LifePoint is located in Nashville but has a Brentwood address, just north of Old Hickory Boulevard near Cleveland Drive.
LifePoint was founded in 1999. It operates a network of hospitals, outpatient centers and long-term medical care facilities. RCCH is made up of 16 regional health system sin 12 different states. It has more than 14,000 employees.
The new company will have 60,000 employees and will include 84 hospital in 30 states.
In a press release, the CEO of RCCH Martin Rash suggested that the new company would be looking to expand.
“The size, scale and focus on growth for the new organization will be impactful for our patients, employees and partners,” he said in the press release.
On Monday LifePoint’s stock price jumped from about $48 per share to about $64 per share.