Ardent Health Services, Nashville’s fourth-largest private company, has announced plans to buy Plano-based LHP Hospital Group.
The combined company will operate 19 hospitals across six states and bring in $3 billion in annual revenue, creating the second-largest private, for-profit hospital operator in the United States, according to a news release.
Terms of the deal, expected to close in early 2017, were not disclosed. The combined company will be headquartered in Nashville and will be led by Ardent’s management team “with the assistance of key LHP executives,” according to a news release.
“This is a transformative growth opportunity for Ardent that will provide significant benefits to each of the communities our companies serve,” David Vandewater, president and CEO of Ardent, said in the release. “In addition to combining two organizations with similar operating philosophies and a strong focus on local partnerships and collaboration, this transaction dramatically enhances our scale, diversity and geographic reach – creating new synergies that better position us for future growth and investment in new and existing markets. We look forward to working closely with the outstanding employees, physicians, nurses and partners associated with LHP to advance our shared goals.”
Ardent’s 2015 revenue totaled just over $2 billion, according to Nashville Business Journal research. Last year, real estate investment trust Ventas Inc. bought Ardent from its previous private equity owners in a deal worth $1.83 billion. The company’s other owners include an affiliate of Chicago-based Equity Group Investments and members of Ardent’s executive management team, according to the release.