CHS Amends $7.6 Billion Merger Deal with HMA
NASHVILLE -- Community Health Systems Inc., which operates ValleyCare Health System of Ohio, has filed an amendment to its July 29 agreement to merge with Florida-based Health Management Associates Inc.
Among the provisions of the amendment are permitting HMA, which operates 71 hospitals in 15 states, to engage Lazard Freres & Co. and UBS Securities to analyze its business and financial condition and the financial terms of the merger.
The amendment also permits HMA to ask either financial adviser to render an opinion as to the fairness, “from a financial point of view,” by no later than Nov. 19.
CHS plans to acquire HMA for approximately $7.6 billion, including the assumption of $3.7 billion of debt. If the merger goes through, the combined hospital systems would have 206 hospitals and more than 30,000 beds.
CHS also is pursuing, with the Cleveland Clinic, the acquisition of Akron General Health System in Akron, Ohio, and is exploring the purchase of Sharon Regional Health System in western Pennsylvania.
Published by The Business Journal, Youngstown, Ohio.
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