Floyd Medical Center recently announced that its Board of Trustees unanimously approved and executed a letter of intent (LOI) to pursue a definitive agreement to join Atrium Health, headquartered in Charlotte, North Carolina. Floyd and Atrium will now enter exclusive negotiations to determine the terms of the potential strategic affiliation. Negotiations are expected to continue for several months.
Over the course of a nearly two-year process, ECG’s team of M&A advisory professionals helped Floyd understand its long-term strategic options, identify a diverse universe of potential partner organizations, orchestrate a competitive auction-based process, and negotiate the terms and conditions of the LOI with Atrium. ECG is presently assisting Floyd with the coordination and completion of due diligence, as well as the development and negotiation of definitive agreements.
“Floyd’s strategic market position and overall financial strength, combined with its reputation for providing the highest levels of care quality and deep commitment to serving its communities, all contributed to robust interest in this strategic partnership opportunity. We very much look forward to continuing to work collaboratively with the Atrium team as we enter this next and final phase of the partnership development process.”
Hector Torres,
Principal and National Practice Leader, Mergers and Acquisitions Practice
ECG Management Consultants
As a key feature of the process outcome, ECG’s M&A advisory professionals helped secure $650 million in total capital commitments, including $80 million of funds for Floyd’s community foundation. The team also helped relieve Floyd County of the backing of $185 million of debt obligations, which will either be assumed or refunded by Atrium’s obligated group. The partnership optimally positions Floyd for continued growth and expansion of services throughout the greater northwest Georgia market, and will enable the continuation of Floyd’s mission of delivering high-quality, state-of-the-art care to the communities it serves.
Published December 19, 2019