Tenet Healthcare Corp. said Friday it agreed to sell three hospitals and related operations in South Carolina for about $2.4 billion in cash to Novant Health Inc.
The deal’s after-tax proceeds are about $1.75 billion.
Tenet Health expects to close the transaction in the first quarter. The transaction includes Coastal Carolina Hospital, Hilton Head Hospital and East Cooper Medical Center.
Tenet Healthcare will not sell its ambulatory facilities operated by United Surgical Partners Int. in the markets served by the three hospitals. Those hospitals generated $552 million in revenue for the last 12 months ending Sept. 30.
Privately held Novant Health is based in Winston-Salem, N.C. as a network of hospitals, physician clinics and outpatient facilities with more than 1,900 physicians and 36,000 employees. The company’s portfolio includes 800 locations, including 16 hospitals.
Tenet Healthcare’s stock is up 19.2% in 2023, compared with a 17.4% rise by the S&P 500
SPX.
Tenet Healthcare’s
THC,
stock was up by 11% in morning trading.
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