HCA Incorporated, the largest hospital chain in the United States, is set to be sold to a private investor in a leveraged buyout deal worth some $33 billion. The buyout group, which includes Bain Capital, Kohlberg, Kravis Roberts (KKR), and Merrill Lynch, offered to pay $21 billion for HCA, in addition to taking on $11.7 billion in debt. HCA agreed to the terms of the deal on Monday, the same day the company reported a 27 percent drop in second-quarter profit, hurt by a rising toll of unpaid medical bills. The company owns and operates 176 hospitals and 92 free-standing surgery centers in 21 states, England and Switzerland Under terms of the deal, which will be the largest leveraged buyout in history, HCA will be bought for $51 per share, a premium of about 6.5 percent over its closing stock price of $47.87 on Friday. U.S. stock markets reacted favorable to news of the deal, rising significantly in early trading. Investors have welcomed a spate of recent private equity deals over the last two years as low interest rates, liberal debt markets, and surplus dollars create ideals conditions for such takeovers.
