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Tenet agrees USD4.3bn deal to acquire Vanguard Health
Monday 24 June 2013

24 June 2013 – US hospital operator Tenet Healthcare Corp (NYSE:THC) said Monday it had struck a final deal to buy domestic sector player Vanguard Health Systems Inc (NYSE:VHS) for USD4.3bn (EUR3.3bn) in cash, including USD2.5bn of debt.

The proposed price per share is USD21.00.

The acquisition, which has been cleared by both firms' boards but has yet to receive regulatory green light, is seen to be wrapped up before the end of the year. It is seen to have a positive impact on earnings in the first year, Tenet said.

The transaction will be bankrolled with debt, the buyer noted.

As a result of the takeover, Tenet will gain access to new geographic markets, expand the breadth of its offerings, diversify its earnings sources and increase the expected benefits under the healthcare reform, the buyer's CEO, Trevor Fetter, noted.

Tenet expects to realise annual synergies of between USD100m and USD200m, it said.

Gibson Dunn & Crutcher LLP, Lazard Ltd (NYSE:LAZ), Bank of America Merrill Lynch, Barclays Plc (LON:BARC) and Teneo Capital LLC advised the buyer on the transaction, while the target was consulted by Skadden Arps Slate Meagher & Flom LLP and JPMorgan Chase & Co (NYSE:JPM).
Date Published: 24/06/2013
Target: Vanguard Health Systems Inc
Country: USA
Deal Size: 1.8bn (USD)
Sector: Healthcare
Type: Corporate acquisition
Financing: Cash, Debt
Status: Agreed
Buyer: Tenet Healthcare Corp
Buyer Advisor: Barclays Plc , Bank of America Merrill Lynch, Gibson Dunn & Crutcher LLP, Lazard Ltd , Teneo Capital LLC