Warburg Pincus Said to Explore Options for RegionalCareby and
Apollo among firms interested in $800 million company
Warburg bought RegionalCare in 2009 for undisclosed sum
Warburg Pincus, one of the world’s largest private-equity firms, is working with UBS Group AG to explore strategic options for RegionalCare Hospital Partners, people with knowledge of the matter said.
The bank is examining alternatives including a sale or refinancing that could value the health-care company at about $800 million, said the people, who asked not to be identified because the information is private. Warburg bought RegionalCare in 2009 and merged the company with Essent Healthcare Inc. in 2011, backed by $460 million of loans.
RegionalCare has drawn interest from a number of private-equity firms, including Apollo Global Management LLC, which has held talks with lenders directly about taking ownership of the company, the people said. Warburg has committed $300 million in equity to the company since 2009, according to RegionalCare’s website.
RegionalCare, based in Brentwood, Tennessee, operates community hospitals in non-urban markets across the U.S. The company is led by Chief Executive Officer and Chairman Martin Rash, who previously held the same position at Province Healthcare.
Spokesmen for Warburg Pincus, Apollo and UBS declined to comment. A spokesman for RegionalCare didn’t immediately respond to e-mailed requests for comment.