DALLAS - (Business Wire) Tenet Healthcare Corporation (NYSE: THC) today announced that it will be selling its entire interest in Broadlane, Inc. as part of a definitive agreement reached for TowerBrook Capital Partners L.P. to acquire a majority interest in Broadlane. Tenet
’s proceeds from the sale will be approximately $155 million in cash. Ten percent of the proceeds will be held in escrow and distributed over approximately six years. Tenet expects to record a gain on the transaction, which will be substantially offset for tax purposes by existing net operating loss carryforwards. The transaction, subject to certain pre-closing conditions, is expected to close in the third quarter of 2008.
“Broadlane began more than eight years ago as the materials management department of Tenet and has since grown to become a successful, independent company that has helped healthcare organizations of all types save money and reduce the cost of healthcare in this country,” said Trevor Fetter, Tenet’s chief executive officer and president. “We have confidence in Broadlane and its management team, and we look forward to continuing a productive and close relationship with Broadlane under its new ownership.”
“Today’s announcement demonstrates the continued progress we are making to increase the efficiency of our balance sheet,” said Biggs Porter, Tenet’s chief financial officer. “The additional cash provided by this transaction also enhances our financial flexibility.”
Broadlane is a leading technology-oriented healthcare services company that reduces cost and creates operational efficiencies for thousands of acute care hospitals, ambulatory care facilities, physician practices and other healthcare providers in the United States. Its core services include supply chain management and clinical workforce management services.
Tenet Healthcare Corporation, through its subsidiaries, owns and operates acute care hospitals and related ancillary health care businesses, which include ambulatory surgery centers and diagnostic imaging centers. Tenet is committed to providing high quality care to patients in the communities we serve. Tenet can be found on the World Wide Web at www.tenethealth.com.
Some of the statements in this release may constitute forward-looking statements. Such statements are based on our current expectations and could be affected by numerous factors and are subject to various risks and uncertainties discussed in our filings with the Securities and Exchange Commission, including our annual report on Form 10-K for the year ended Dec. 31, 2007, our quarterly reports on Form 10-Q and periodic reports on Form 8-K. Do not rely on any forward-looking statement, as we cannot predict or control many of the factors that ultimately may affect our ability to achieve the results estimated. We make no promise to update any forward-looking statement, whether as a result of changes in underlying factors, new information, future events or otherwise.
Tenet Healthcare Corporation
Media:
David Matthews, 469-893-2640
David.Matthews@tenethealth.com
or
Investors:
Thomas Rice, 469-893-2522
Thomas.Rice@tenethealth.com
