Medical Properties Trust, Inc. (NYSE:MPW), Bill Wilcox, Executive Chairman, Phil Spencer, Chief Executive Officer and Greg Miller, Chief Financial Officer of Springstone, LLC entered into a definitive agreement to acquire Springstone, LLC from Welsh, Carson, Anderson & Stowe and others for $950 million on June 15, 2021. The transaction includes acquisition of 18 inpatient behavioral hospitals valued at approximately $760 million to be 100%-owned by Medical Properties Trust and Springstone valued at approximately $190 million owned by Medical Properties Trust and existing Springstone management. Medical Properties Trust, Inc. expects to initially fund the total cash consideration using cash on hand and borrowings under its revolving credit facility and additional financing arrangements, which may include issuances of debt and equity securities, placement of new secured loans on the acquired real estate, or a combination thereof.

The sources of financing actually used will depend upon a variety of factors, including market conditions. MPT anticipates that Springstone will continue to be operated by the same senior management team. It is expected that Bill Wilcox, Phil Spencer and Greg Miller, will be responsible for the day-to-day operations of Springstone.

The transaction is subject to customary closing conditions, including applicable regulatory approvals and the finalization of agreements with current management and is expected to close during the second half of 2021. Barclays PLC (LSE:BARC) and Guggenheim Securities, LLC acted as financial advisors to Medical Properties Trust, Inc. The transaction is expected to accretive for Medical Properties Trust, Inc. Centerview Partners LLC acted as financila advisor to Welsh, Carson, Anderson & Stowe and Springstone. Moelis & Company acted as financial advisor to Springstone, Inc. Anthony J. Norris of Sidley Austin LLP acted as legal advisor to Springstone, LLC.