Porter Hedges advised UGHS Senior Living, Inc. (“UGHS Senior Living”), a subsidiary of University General Health System, Inc., in its sale to Cornerstone Health Group Holding, Inc. (“Cornerstone”) for $24.75 million.
Cornerstone was the stalking horse bidder and ultimate buyer approved by the court in January 2016. UGHS Senior Living was a profitable company that filed for Chapter 11 protection in November 2015 to pursue a sale under §363 of the bankruptcy code, which followed its parent company’s filing in February 2015.
UGHS Senior Living is a senior care company with two communities in Texas and one in Tennessee. The faith-based, non-profit company has 230 units (329 beds), comprised of assisted living, independent living and memory care units managed by affiliate TrinityCare Senior Living, LLC.
Cornerstone is a diversified healthcare company based in Dallas, Texas. It is actively involved in the long-term acute care and senior living segments, operating 19 long-term acute care hospitals in six states with 880 licensed beds and 2,000 employees. It is managed by Highland Capital Management L.P., an SEC-registered investment adviser with approximately $19 billion under management.
The Porter Hedges team included John Higgins and Aaron Power. For additional details on the transaction, see the news report here.
The lead financial advisor on the transaction was Chad J. Shandler, CPA with the CohnReznick Advisory Group.