, a hospital owner and operator based in Dallas, agreed to acquire
Quorum Health Group
for about $2.4 billion in cash and stock and the assumption of debt, the companies announced Thursday.
Under the terms of the deal, shareholders in Brentwood, Tenn.-based Quorum will receive $3.50 cash and 0.4107 share of Triad stock for each Quorum share. Based on Triad's close Wednesday of $30.75, this values Quorum shares at $16.13 a share, or an 18.4% premium over its Thursday close of $13.63.
Once completed, the deal will create the third-largest investor-owned hospital company in the U.S., with 53 hospitals, 14 ambulatory surgery centers and 9,479 licensed beds. The company will focus on small cities and mid-sized markets.
Triad shareholders will collectively own approximately 51% of the combined company, with Quorum shareholders owning 49%.
The transaction has been approved by both boards of directors and is expected to be completed in the first half of 2001. The deal is not expected to hurt earnings in the first year and will likely boost earnings after the first year, the companies said.