ATLANTA — WellStar Health System, a Marietta, Ga.-based healthcare provider, has agreed to purchase five Atlanta-area hospitals and related operations from Tenet Healthcare Corp. (NYSE: THC).
The purchase price is $575 million, according to the Atlanta Business Chronicle.
The five hospitals are North Fulton Hospital, Spalding Regional Hospital, Sylvan Grove Hospital, Atlanta Medical Center and its South Campus, as well as complementary physician practices and businesses.
The transaction also includes 26 physician clinic locations. The facilities comprise 1,192 beds, 4,300 employees and 1,390 doctors, according to the Business Chronicle.
Cain Brothers served as Dallas-based Tenet’s financial advisor to negotiate the terms of the transaction.
In addition to the purchase price, WellStar will assume $86 million in debt related to the lease of North Fulton Hospital, the Business Chronicle reports.
Earlier this year, Tenet detailed its plans to exit the Georgia market.
The transaction is subject to customary regulatory approvals and other closing conditions and is expected to be completed the first quarter of 2016.
Tenet’s stock price closed on Monday, Dec. 21, at $30.59 per share, down from $51.85 per share a year ago.
— Scott Reid