Porter Hedges Advises UGHS Senior Living, Inc. in its $24.75M Sale to Cornerstone Healthcare Group
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 lead financial advisor on the transaction was Chad J. Shandler, CPA with the CohnReznick Advisory Group.