Portage Health Signs Definitive Agreement with LifePoint Hospitals
Portage Health, a stand-alone 501(c)3 hospital in Hancock, MI has signed a definitive agreement to form a whole hospital joint venture with LifePoint Hospitals. This transaction is the first joint venture of its kind in the Midwest. The agreement, valued at over $100 million, will entail $60 million in capital investments and $40 million to fund a community foundation. In addition, Portage Health will retain significant control over parent company level decisions moving forward via a 50% blocking interest.
The Board of Directors of Portage engaged Juniper Advisory to proactively assess their strategic options, as well as to implement a competitive process to evaluate transaction alternatives. Juniper designed and managed a marketing process that included identifying potential suitors, drafting information materials, populating an electronic data room, conducting reverse due diligence, and negotiating and executing the joint venture transaction.
Portage is the dominant healthcare provider in the western portion of Michigan’s Upper Peninsula. The hospital offers a full spectrum of medical capabilities and maintains strong ties with Michigan Technological University, a leading science, engineering, and research institution located in Houghton, MI. The hospital enjoys a very strong current operating condition. It is a major center of economic activity and employment in the region. In creating this partnership, the Board sought to proactively position the financial capabilities of the hospital and maximize its opportunities to thrive in the future.
LifePoint is a publicly traded company that owns nearly 60 hospitals in 20 states. It generates over $3.5 billion in revenue annually and is widely followed by institutional research analysts. LifePoint’s joint venture with Duke University, Duke LifePoint, acquired Marquette General Health System in September, 2012. This was the company’s first acquisition in Michigan and represented a major expansion and financial commitment. The joint venture with Portage is an effort to further develop a well-capitalized network of care across the region.
Juniper is a specialized and independent investment banking firm dedicated to providing its hospital industry clients with expert merger and acquisition (M&A) and other strategic financial advice. We are the only experienced M&A group whose resources are focused exclusively on this business and industry. Juniper was founded on the belief that a critical need exists in the hospital industry for an advisory firm which is both qualified to provide experienced and dedicated M&A advice and free of potential conflicts of interest created within larger, multi-product financial service companies. For more information, read about Juniper.
In the Press
For additional details on this transaction, please refer to this article from the Wall Street Journal.