Rome, GA — Floyd Medical Center ("Floyd" or the "Company"), a leading provider of healthcare services in northwest Georgia and northeast Alabama, has completed a membership substitution and strategic combination with Atrium Health. Floyd provides patient care at 62 locations and is anchored by the flagship 304-bed Floyd Medical Center, an acute care hospital and regional referral center in Rome, Georgia.
Legacy FocalPoint Partners, LLC, now B. Riley Securities ("B. Riley"), alongside ECG Management Consultants, LLC, served as strategic and financial advisor to Floyd, and the law firms of Epstein, Becker and Green, P.C. and Baker Donelson, P.C. served as transaction and regulatory counsel to Floyd, respectively. While the specific terms of the transaction were not disclosed, by virtue of the strategic combination, Atrium Health has pledged to invest approximately $650M in capital for Floyd over the next decade to enhance capabilities, skills and talent, facilities, and technology. Floyd's combination with Atrium Health will also result in the creation of a new Floyd-Polk Healthcare Foundation, Inc., which when fully funded, is expected to total more than $150M in assets. The Foundation plans to address disparities in care throughout the region, among other things, with its investment earnings. The $650M in long-term capital commitments, combined with the $150M in Foundation proceeds, plus the defeasement of Floyd's outstanding indebtedness by Atrium Health, provides for total economic consideration in excess of $900M.
Kurt Stuenkel, Chief Executive Officer of Floyd, commented, "What impressed me from the first meeting with Atrium Health's leadership is how alike we are in our commitment to clinical excellence, service to the community and, especially, a mission that embraces caring for all patients. Being part of Atrium Health will allow us immediate access to the best minds and resources of a highly regarded academic health system that will help ensure quality, accessible health care is available in our community for decades to come. The tireless efforts and health system transaction advisory expertise of the [B. Riley] team, supported by our entire roster of legal and strategic advisors, resulted in a merger with Atrium Health that will optimally position Floyd for success over the coming decades and beyond."
Managing Director Hector Torres, with B. Riley's Healthcare Investment Banking practice, stated, "Working on behalf of best-in-class, community-based hospitals and health systems such as Floyd remains a cornerstone of [B. Riley's] national Healthcare Investment Banking practice. Floyd's merger with Atrium Health represents a highly strategic approach to ensuring both the sustainability and enhancement of the full continuum of clinical services for the communities it serves. We very much look forward to Floyd's continued growth and success as an integral component of the Atrium Health enterprise."
About Floyd Medical Center
The Floyd family of health care services is a leading medical provider and economic force in northwest Georgia and northeast Alabama. At the hub of these services is Floyd Medical Center, a 304-bed full-service, acute care hospital and regional referral center. Floyd employs more than 3,400 employees who provide care in over 40 medical specialties at three hospitals: Floyd Medical Center in Rome, Georgia; Floyd Cherokee Medical Center in Centre, Alabama; Floyd Polk Medical Center in Cedartown, Georgia, as well as Floyd Behavioral Health Center, a freestanding 53-bed behavioral health facility, also in Rome; and a primary care and urgent care network with locations throughout the service area of northwest Georgia and northeast Alabama. For more information, please visit www.floyd.org.
About Atrium Health
Atrium Health is a nationally recognized leader in shaping health outcomes through innovative research, education, and compassionate patient care. Atrium Health is an integrated, nonprofit health system with nearly 70,000 teammates serving patients at 40 hospitals and more than 1,400 care locations. It provides care under the Wake Forest Baptist Health name in the Winston-Salem, North Carolina, region, as well as Atrium Health Navicent and Floyd in Georgia. Atrium Health is renowned for its top-ranked pediatric, cancer, and heart care, as well as organ transplants, burn treatments, and specialized musculoskeletal programs. Ranked among U.S. News & World Report's Best Hospitals for Cancer and in eight pediatric specialties, Atrium Health has also received the American Hospital Association's Quest for Quality Prize and was the recipient of the 2020 Centers for Medicare & Medicaid Services Health Equity Award for its efforts to reduce racial and ethnic disparities in care. With a commitment to every community it serves, Atrium Health seeks to improve health, elevate hope, and advance healing - for all, providing more than $2 billion per year in free and uncompensated care and other community benefits. For additional information on Atrium Health, please visit www.atriumhealth.org/.
B. Riley Securities is a leading investment bank that provides a full suite of investment banking, corporate finance, advisory, research, and sales and trading services. Investment banking services include initial, secondary, and follow-on offerings, institutional private placements, merger and acquisition (M&A) advisory, SPACs, corporate restructuring, and recapitalization. The firm is nationally recognized and highly ranked for its proprietary small-cap equity research. B. Riley Securities is a wholly owned subsidiary of B. Riley Financial. For more information, visit brileysecurities.com and focalpointllc.com.
Please contact Managing Director Hector Torres at 917-209-6490 with any questions regarding this transaction.