Quorum prepares to hand off Arkansas hospital
Posted on November 6, 2009 at 9:56 am
Sparks Hospital in Fort Smith, Ark., has agreed to sell itself to Health Management Associates for about $138 million, which means the two Quorum Health Resources who have been managing the 492-bed facility will soon be on their way back to the CHS home office in Brentwood.
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Go on, book that Vegas trip
Posted on November 4, 2009 at 8:12 am
That’s almost what the investment community is saying to Gaylord Entertainment CEO Colin Reed, who on Tuesday put Sin City on a short list of cities his company may buy its way into.
A good chunk of the hotel/resort operator’s third-quarter earnings call Tuesday focused on Las Vegas, where a bunch of glitzy properties are struggling — or as Reed put it, “operating way below their pro formas” of six or seven years ago. Several analysts pushed Reed to clarify his recently floated strategic option of buying such a troubled property to add to his portfolio.
Generating an appropriate return is priority No. 1, Reed said, and such a return will have to come primarily from serving one of the company’s core customer groups — associations that rotate their meetings around the country each year. Half of those groups, Reed added, will never go to Vegas. The other half wants to be there regularly — and they could be enough to tip Gaylord’s M&A scales in the coming year or so, when Reed thinks the market will really hit bottom.
“I don’t think we should get into too much detail, but we’ve been consistent in telling people over the years that people rotate out of our system to go to Vegas,” Reed said. “Is it a market that interests us? It is. There are probably as well five, six, seven other markets in the United States that interest us as well.”
Investors seem plenty interested, too. Gaylord shares (Ticker: GET) jumped almost 8 percent Tuesday. Put a good chunk of that down to the company’s solid cost controls and the improving performance of its D.C.-area property, but also consider it a sign that the market is confident Reed and his team will soon find something to their liking in the Nevada desert.
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Another heady buy for Genesco
Posted on at 7:40 am
The Nashville-based retailer has acquired Sports Fan-Attic, a chain of 37 stores in seven states, adding another headwear brand to an arsenal it’s been building up since 2004. The companies aren’t disclosing the deal’s price just yet, but if Sports Fan-Attic’s valuation is in line with Genesco’s deals for Hat World and Hat Shack, it was worth about $13 million to Genesco, whose shares (Ticker: GCO) fell almost 2 percent after hours Tuesday.
“We see great long-term potential for growing the Sports Fan-Attic store base, and look forward to bringing Genesco’s collective strength in the mall real estate market and our experience in managing new store growth to that process.”
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Parent of local data center to be acquired
Posted on November 3, 2009 at 11:01 am
The board of Nuvox, a telecommunications company targeting businesses, has agreed to sell the company to Arkansas-based Windstream for more than $600 million. Nuvox this past summer opened a new Nashville data center east of Bicentennial Mall.
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HIMSS absorbs Nashville medical biz
Posted on October 30, 2009 at 8:04 am
The Chicago-based Healthcare Information Management Systems Society, a nonprofit membership group, has acquired Nashville’s Medical Banking Project. Read about how the project will bring together health care IT and banking here.
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Gaylord mulls the M&A route
Posted on October 29, 2009 at 7:36 amThe recession has Gaylord execs scanning the luxury hotel landscape for properties it could acquire and expand into full-fledged resorts. At an investor conference yesterday, Senior VP of Finance Mark Fioravanti told investors about 50 hotels around the country would fit the bill.
A little buying power?
Posted on October 28, 2009 at 7:48 amNational Healthcare Corp. (Ticker: NHC) has renewed its $75 million line of credit with Bank of America for another year. The Murfreesboro-based operator of long-term care and senior-living facilities said the available money will help it take advantage of growth opportunities in the senior care market.
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Psst, property managers – Lookin’ for an exit strategy?
Posted on October 23, 2009 at 10:24 amNorth Carolina property management company William Douglas is a willing buyer.
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CHS buying Washington clinic business
Posted on October 21, 2009 at 11:43 amCommunity Health Systems (Ticker: CYH) has reached an agreement to buy specialty medical provider Rockwood Clinic, The Spokesman-Review reports. Last year, CHS bought nearby Deaconess Medical Center and Spokane Valley Hospital in a $156M deal.
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Local song catalog part of BMG/KKR buy
Posted on at 7:28 am
A joint venture between Bertelsmann and Kohlberg Kravis Roberts has completed its acquisition of Crosstown Songs from the investment arm of food giant Cargill. Crosstown is a publisher that has been a part of big hits since it began working with noted Nashville producer Dann Huff two years ago.
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Rash, Rutledge surface with Alabama bid
Posted on October 15, 2009 at 8:29 am
After a couple of quiet months, RegionalCare Hospital Partners, the latest venture headed by serial health care entrepreneur Marty Rash, has offered to buy an Alabama health system whose 2008 revenues fell short by $8 million and is tightening its belt big time.
The board has approved a $172 million budget for the fiscal year, which began July 1, and hospital administrators laid off between 65 and 70 full-time employees in July to reduce its personnel expenses.
Rash launched RegionalCare in July with fellow Province alum John Rutledge and $300 million in Warburg Pincus backing. Until now, the company had been conspicuously invisible.
SEE ALSO: Our recent story on the gathering hospital M&A wave
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CHS’ Smith: More M&A opportunities coming
Posted on October 2, 2009 at 2:58 pm
The president and CEO of Community Health Systems spoke today to the Vanderbilt University’s Health Care Business Alliance Conference about his company’s strategies and the hospital market as a whole. Since Smith joined the company in 1997, it has posted a compounded annual growth rate of 28 percent and is on track for revenues of $12 billion in 2009. The company employs 85,000 people across the country and about 2,000 in the Nashville area. Here are some excerpts from this talk:
• On the benefit of CHS’ national footprint: “We are spread out, We don’t have any one hospital or any one state where we have a disproportionate share of our revenue or earnings. The importance of that is risk and avoiding risk.”
• On why centralized administration works: Smith said CHS’ centralized services – for everything from facility management to billing, customer service and insurance programs – has helped it improve hospital operations and quickly implement new programs and technology.
It also helps bring acquired hospitals into the fold more quickly. In the past year, CHS has acquired three facilities with a combined 632 beds and $430 million in revenue. Having the systems in place to absorb those facilities has helped CHS hold its own after acquisitions. The company’s share of the markets where it operates stands at about 43 percent – $12 billion of the $28 billion in hospital revenue.
• On the M&A market: Moving forward, there will be a lot of opportunities for hospital acquisitions as many of the smaller, independent hospitals continue to struggle, Smith said. Prices are now at 40 percent to 60 percent of net revenue, as opposed to the 70 percent to 80 percent of net revenue of several years ago. (For more on this topic, check this coming Monday’s City Paper.)
• On the prospect/cloud of health care reform: Regardless of what shape reform takes, Smith said the focus of health care will continue to be on patient care.
“I don’t care what the legislators do, they can’t screw this up that bad.”
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Penske pulls Saturn’s plug
Posted on September 30, 2009 at 6:54 pm
After his deal with General Motors didn’t pass muster with the unnamed company that would have taken over manufacturing operations, Roger Penske has cancelled his planned purchase of Saturn. Without the assurance of someone to take over production, “the risks and uncertainties related to the availability of future products prohibit the company from moving forward.”
For its part, GM isn’t even going to try again to save Saturn. Its operations will be completely wound down by next fall, shutting off the lights at dealerships in Rivergate and Cool Springs.
SEE ALSO: Very randomly placed at the end of a Bloomberg story, this quote from an analyst on what coulda been for Saturn.
“Saturn is the brand you wanted to like,” said Rebecca Lindland, an analyst at IHS Global Insight. “It is the little brand that could have and should have” been great.
A lot of people around these parts would agree with that.
Good thing Emdeon and Cumberland went public last month
Posted on September 25, 2009 at 12:59 am
StreetInsider.com says the trickle of IPOs and secondary offerings has become a near-tidal wave that could quickly peter out as investors simply lose interest and look to digest what they’ve gorged on in recent weeks. Besides, all these firms raising millions will have to put that money to work sometime.
‘Maybe a little antacid, in the form of more M&A, could help us fight through the pain.’
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Dell to buy IT services firm
Posted on September 21, 2009 at 8:15 am
The computer maker has signed a deal to acquire Perot Systems for almost $4 billion, a move that will boost its IT services revenue by $2.5 billion annually. Shares of Dell (Ticker: DELL) are off about 4 percent in pre-market trading.
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