Apollo emerges as take-private bidder for hospital operator
September 21, 2016
Apollo Global Management is in talks to acquire Community Health Systems (NYSE: CYH), an operator of hospitals in 22 US states, according to Reuters. The company is believed to be pursuing options to escape a reported debt load exceeding $15 billion. In the wake of the news, CHS saw its share price dip from $12.28 at the end of last week to a low of $10.37 on Tuesday morning before bouncing back slightly to $10.76 by the market's close.
A deal for the company would tie into Apollo’s recent string of investments in hospitals. Last November, Apollo agreed to acquire RegionalCare Hospital Partners in a secondary buyout from Warburg Pincus, and in May the firm reached a deal to add on Capella Healthcare to the RegionalCare business, creating a combined company with a presence in 12 states and $1.7 billion in revenue.