Community Health Outbids PE Firms for Triad

CCMP Capital Advisors and GS Capital Partners have been bested in their efforts to acquire Triad Hospitals Inc. (NYSE: TRI). The two firms agreed on a $6.4 billion buyout last month (including $1.7 billion in assumed debt), but Triad was free to solicit superior proposals for next 40 days. And it found one: Community Health Systems (NYSE: CYH) has agreed to acquire Triad for $6.8 billion, or $54 per share compared to the original $50.25 per share offer. Triad will owe CCMP and GS a $20 million breakup fee and another $20 million in reimbursement for out-of-pocket expenses. Lehman Brothers is advising Triad on the sale.