IASIS Healthcare signs agreement to acquire Brim Holdings

IASIS HealthcareSep 10 2010

IASIS Healthcare ("IASIS") today announced the signing of a definitive agreement to acquire Brim Holdings, Inc., which operates Wadley Regional Medical Center in Texarkana, Texas, and Pikes Peak Regional Hospital in Woodland Park, Colorado, in a cash-for-stock transaction valued at approximately $95 million, subject to customary closing conditions and working capital adjustments. Combined revenue of the two facilities is approximately $120 million.

“We are excited about adding the new Pikes Peak facility to our family of hospitals and the opportunity this will provide us to serve the healthcare needs of the thriving Woodland Park and surrounding communities”

Altaris Capital Partners, the current majority owner of Brim Holdings, will retain majority ownership of Brim's hospital management contract and health technology solutions businesses through a spin-out transaction, which is scheduled to take place just prior to the closing of IASIS' acquisition of Brim Holdings.

"We are excited about the opportunity to add Wadley Regional Medical Center and Pikes Peak Regional Hospital to our growing company and look forward to welcoming their medical staffs and employees to our team," said IASIS Healthcare President Carl Whitmer. "As we partner to provide high-quality healthcare to the communities served by each of these hospitals, we will support both locations with the same corporate expertise and resources that our other facilities enjoy, including our system-wide health information technology, quality initiatives and access to capital."

Wadley Regional Medical Center, a general acute care hospital with 370 licensed beds, serves a surrounding population of approximately 275,000. Its services include a full range of medical and surgical specialties such as internal medicine, family practice, cardiology, cardiovascular surgery, urology, neurology, pulmonology, orthopedics, gastroenterology, radiology and women's services. The facility is fully equipped with a 24-bed trauma-ready emergency department, eight general operating rooms, two open-heart operating rooms, two cardiac catheterization labs, a GI lab and a 23-bed outpatient surgery pavilion.

"Through a commitment to excellence and strong relationships with our new physician partners, who will retain a 27 percent minority ownership in Wadley Regional Medical Center, we look forward to serving Texarkana and the surrounding communities by building on the momentum that has been established at the hospital," said Whitmer.

Pikes Peak Regional Hospital, a 15-bed critical access hospital, serves a Colorado community with a population of 32,000. Its services include a full range of medical and surgical specialties such as internal and emergency medicine, pulmonology, gastroenterology, cardiology, orthopedics and neurology.

"We are excited about adding the new Pikes Peak facility to our family of hospitals and the opportunity this will provide us to serve the healthcare needs of the thriving Woodland Park and surrounding communities," said Whitmer.

IASIS' acquisition of Brim Holdings is expected to close no later than the fourth calendar quarter of 2010.