LifePoint Health and RCCH HealthCare Partners are merging, with LifePoint remaining as the surviving privately-held entity upon closing. RCCH HealthCare Partners is owned by certain funds managed by affiliates of Apollo Global Management.

Barclays, Citigroup, RBC Capital Markets and Credit Suisse will provide financing to support the transaction. PSP Investments Credit and an affiliate of Qatar Investment Authority will provide a portion of the debt financing, with Apollo funds providing an equity contribution.

At close, LifePoint shareholders will receive $65.00 per share in cash for each share of LifePoint common stock they own, resulting in a LifePoint enterprise value of approximately $5.6 billion, including $2.9 billion of net debt and minority interest. The purchase price represents a premium of approximately 36% to LifePoint’s closing share price on July 20, 2018, the last trading day prior to the announcement.

The combined company will be led by William F. Carpenter III, chairman and CEO of LifePoint.

Martin Rash, chairman and CEO of RCCH, said, “The opportunity to join with LifePoint marks a significant milestone in RCCH’s history. The size, scale and focus on growth for the new organization will be impactful for our patients, employees and partners. I am thrilled that these two great companies are coming together.”

The transaction is expected to be completed over the course of the next several months, subject to customary closing conditions, including approval by LifePoint’s shareholders.

Goldman Sachs is acting as financial advisor and White & Case as legal advisor to LifePoint. Barclays and MTS Health Partners are acting as financial advisors and Akin Gump Strauss Hauer & Feld and Paul, Weiss, Rifkind, Wharton & Garrison as legal advisors to RCCH.

LifePoint owns and operates community hospitals, regional health systems, physician practices, outpatient centers, and post-acute facilities in 22 states.

Based in Brentwood, TN, RCCH HealthCare Partners operates 16 regional health systems in 12 states.