Vibra Healthcare LLC announces it has reached an agreement to form a partnership that combines Ernest Health Inc with several Vibra rehabilitation hospitals and development projects that were contributed in exchange for a significant equity participation in the new entity.
One Equity Partners (OEP), a middle market private equity firm that joins Vibra in the partnership, has agreed to acquire Ernest from Medical Properties Trust and Ernest’s management shareholders. Following the completion of the transactions, Ernest will be managed by the Vibra management team, led by Chairman and CEO Brad Hollinger, and will continue to operate under the Ernest name.
Ernest currently operates 25 inpatient rehabilitation and long-term acute care hospitals in 11 states, including Arizona, Colorado, Idaho, Indiana, Montana, New Mexico, Ohio, South Carolina, Texas, Utah and Wyoming. Financial details of the transactions have not been disclosed. The transactions are expected to close during the third quarter of 2018, explains a media release from Vibra Healthcare LLC, headquartered in Mechanicsburg, Pa.
“Strategically, the Ernest hospitals balance Vibra’s portfolio of hospitals between inpatient rehabilitation and long-term acute care, better positioning Vibra to thrive in the fast-changing post-acute environment. From a geographic perspective, Ernest provides Vibra entry into over twenty new markets,” says Hollinger, in the release.
“The opportunity to partner with Brad and the Vibra management team was a critical factor in our decision to acquire Ernest. The combination of Ernest with the Vibra assets represents the culmination of several years working with the Vibra team, who we believe are uniquely qualified to build upon the strong Ernest foundation,” adds Greg Belinfanti, senior managing director at OEP.
[Source(s): Vibra Healthcare LLC, PR Newswire]