Tenet Healthcare (NYSE:THC) has agreed to sell 70% of its majority ownership stake in Brookwood Baptist Health in Birmingham to Orlando Health for about $910M in cash (after-tax proceeds of approximately $790M).
The transaction will include five hospitals – Brookwood Baptist Medical Center, Princeton Baptist Medical Center, Walker Baptist Medical Center, Shelby Baptist Medical Center, Citizens Baptist Medical Center – as well as affiliated physician practices and other related operations. Brookwood Baptist Health will remain a joint venture with Baptist Health System.
For the twelve months ended June 30, 2024, Tenet’s equity interest in the Brookwood Baptist Health joint venture generated pre-tax income of around $12M and an adjusted EBITDA less non-controlling interest of ~$60M. The company estimates recording a pre-tax book gain of ~$375M as a result of this anticipated transaction.
The deal is expected to be completed in the fall of 2024, subject to customary regulatory approvals, clearances, and closing conditions.
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