Medical Facilities Corporation Announces Sale of Black Hills Surgical Hospital, LLP

TORONTO, Nov. 14, 2024 /CNW/ - Medical Facilities Corporation ("MFC" or the "Corporation") (TSX:DR.TO), announced that one of MFC's specialty surgical hospitals, Black Hills Surgical Hospital, LLP ("BHSH"), located in Rapid City, SD, has entered into a definitive agreement to sell BHSH to Sanford Health (with certain affiliates, "Sanford"). The proposed transaction is structured as a merger in which Sanford would acquire 100% of the equity securities of BHSH for a total purchase price of $194 million, subject to customary purchase price adjustments (the "Transaction"). The Transaction is expected to yield gross proceeds of approximately $105.2 million for MFC's 54.22% ownership share of BHSH. MFC's minority partner in BHSH, Black Hills Surgical Physicians, LLC, is also participating in the Transaction. The Transaction is expected to close within the week. All amounts are expressed in U.S. dollars.