Cerberus Capital Management has entered into a definitive agreement to acquire Caritas Christi Health Care in a deal valued at $830 million. The company operates a network of Catholic Hospitals with two in Boston and four in eastern Massachusetts. The deal is structured with Cerberus investing $430 million to repay Caritas' debt, finance ongoing renovation projects and for working capital. Cerberus will also assume Caritas' pension liability and has committed to investing approximately $400 million in renovation and upgrade projects to the hospitals.
Private equity firms have invested over $29 billion in 75 Hospital and Inpatient Clinic deals since the beginning of 2005, according to the PitchBook Platform. The largest deal is the Kohlberg Kravis Roberts, Bain Capital and Merrill Lynch Global Private Equity $21.3 billion deal for Hospital Corporation of America. Investing in the industry trailed off after 2008 with only 4 deals in 2009 compared to 13 in 2008 and 23 in 2007. The most active investors in the space include Waud Capital Partners with 7 investments and JLL Partners, CCMP Capital and TowerBrook Capital Partners with 4 deals apiece.