PE-backed Prospect buys Greater Waterbury Health Network

Prospect Medical Holdings, which is backed by Leonard Green & Partners, has acquired Greater Waterbury Health Network. Included in the sale is Waterbury Hospital. No financial terms were disclosed. Cain Brothers provided financial advice to GWHN on the transaction.

PRESS RELEASE

Greater Waterbury Health Network (“GWHN”), and its affiliates including Waterbury Hospital, have sold substantially all of their assets to Prospect Medical Holdings (“Prospect”), owner and operator of 20 hospitals nationwide, and more than 140 clinics and outpatient centers. Prospect received a three-year license to operate 393 hospital beds at Waterbury Hospital, and has committed to expend $55 million in capital for the development and improvement of the hospital over a seven year time frame.

Waterbury Hospital
Cain Brothers served as GWHN’s exclusive financial advisor in connection with the sale, and assisted in initiating, structuring and negotiating the transaction.

Founded in 1890 and located in Waterbury, CT, Waterbury Hospital provides a comprehensive range of inpatient, outpatient and ancillary services for residents of Waterbury and the surrounding community. Other GWHN affiliates included in the sale were VNA Health at Home, Cardiology Associates of Greater Waterbury, as well as JV interests in Access Rehab Services, The Heart Center of Greater Waterbury, The Harold Leever Regional Cancer Center, and three outpatient imaging centers.

Established in 1996, Prospect is a growing healthcare services company, managing the provision of healthcare services for more than 300,000 members enrolled in its network of over 11,000 primary care physicians and specialists. In addition to Connecticut, Prospect owns hospitals in southern California, New Jersey, Pennsylvania, Rhode Island, and Texas. Prospect is a portfolio company of Leonard Green & Partners, a Los Angeles-based private equity firm.