THI to buy Integrated Health

THI to buy Integrated Health

Byline: Andrew Morse in San Francisco

Trans Healthcare Inc., a privately owned hospital and nursing facility operator, said Dec. 4 it would acquire struggling Integrated Health Services, Inc., for an undisclosed amount.

The all-stock deal, which is expected to be completed by the end of the second quarter of 2003, will boost THI’s operations from 94 facilities to 274 facilities, according to a press release issued by Chicago-based private equity firm GTCR Golder Rauner. GTCR co-founded THI in 1998 and helped the company complete seven acquisitions in the past four years.

“The management team at THI has done a terrific job building the company over the past four years, which has uniquely positioned us to acquire IHS,” GTCR principal Ned Jannotta Jr. said in the press release. “We see a tremendous opportunity for the combined business.”

Based in Camp Hill, Pa., THI operates skilled nursing facilities, specialty hospitals and outpatient rehabilitation clinics in 12 states.

IHS of Sparks, Md., filed for Chapter 11 bankruptcy protection Feb. 2, 2000. The company said it had examined a number of alternatives for restructuring and determined that pursuing a strategic sale was the best option. IHS expects to file a plan of reorganization with the U.S. Bankruptcy Court for the District of Delaware by the end of this year.

The terms of the transaction with THI will be disclosed in that plan.

GTCR manages more than $4 billion of equity and mezzanine capital invested in a variety of industries. Its primary areas of investment focus include transaction processing and payment services, information technology services, healthcare services and outsourced business services.


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