Presbyterian St. Luke's Healthcare System Denver, CO Industry: Healthcare / Providers
Transaction: Buy-Side Advisory
Presbyterian St. Luke's Healthcare System ("P/SL") is a multi-hospital provider system serving the Denver-metro area that had been acquired by American Medical, Inc. ("AMI"), a publicly traded provider system with medical facilities throughout the world. AMI had begun construction on a facility to combine Presbyterian and St. Luke's hospitals when it went private via a leveraged buyout. Subsequent to this transaction, AMI lacked the capital to complete the construction of the new facility. AMI had established a community-based board led by Bob Alexander, P/SL's chairman prior to its acquisition by AMI. Mr. Alexander became concerned about P/SL's future after the leveraged buyout and approached GMB to discuss strategic alternatives. GMB was retained by the community-based board to represent it in the acquisition of P/SL from AMI. A new not-for-profit entity was formed to be the acquirer. GMB successfully negotiated a purchase price with AMI and arranged the necessary financing to close the transaction and complete construction of the new hospital facility. At that time, the transaction was the largest acquisition ever completed by a not-for-profit corporation. Go Back
