BEIJING, March 21, 2012 /PRNewswire-Asia-FirstCall/ -- Concord Medical Services Holdings Limited ("Concord Medical" or the "Company") (NYSE: CCM), a leading hospital management company and the operator of the largest network of radiotherapy and diagnostic imaging centers in China, today announced the signing of a purchase agreement under which the Company agreed to acquire 52% of the equity interest of Chang'an Hospital in a cash transaction for approximately RMB248 million ( $39.4 million). Chang'an Hospital is one of the largest private-owned general hospitals in China, located in Xi'an City, Shaanxi Province, China.
"We are very pleased to welcome Chang'an Hospital to the CCM family," Dr. Jianyu Yang, Chairman and CEO said. "As a private hospital with over 10 years of operating history, Chang'an Hospital has now entered into the stage of profitable growth. After the completion of the acquisition, Chang'an Hospital will be integrated into CCM's nationwide network. In the future, we plan to establish strategic alliances with leading medical institutions in the world, to improve the medical service quality and management efficiency of Chang'an Hospital. This acquisition is the important first step towards transforming CCM into a leader in China's healthcare service sector."
Chang'an Hospital, with over 1,000 beds, is one of the largest privately-owned general hospitals in China. Combined with CCM's 131 radiotherapy and diagnostic imaging centers located across China, Chang'an Hospital will serve as the regional hub in CCM's nationwide network and cover the northwestern region of China, which has over 100 million population. Upon completion of the acquisition, CCM will become one of the few US-listed companies to own a controlling equity interest in a private general hospital in China."The acquisition of Chang'an Hospital is an important milestone in CCM's development," Dr. Yang commented. "This transaction will enable us to accumulate important hospital operating experience and management techniques, strengthen our own medical and hospital management team, and prepare for the planned opening of other specialty hospitals in the CCM network. Our long-term strategy is to become the leading hospital management and operating company in China." Since 2009, CCM has worked with Chang'an Hospital as part of its equipment lease and management business. In 2010, CCM and Chang'an Hospital jointly established CCICC, a specialty oncology hospital, which will be merged into Chang'an Hospital after the closing of this transaction.