HCA, the leading provider of healthcare in the U.S., will be acquired for approximately $33 billion by private investors including equity firms Bain Capital, Kohlberg Kravis Roberts & Co., and Merrill Lynch Global Private Equity; and the Frist family. HCA was founded in 1968 by Dr. Thomas Frist Sr. and his son, Dr. Thomas Frist Jr. Another son, Bill Frist, M.D., is a U.S. Senator (R-Tenn.) and Senate Majority Leader.

HCA includes more than 176 hospitals and 92 outpatient surgery centers in 21 states, as well as England and Switzerland. In 2005 HCA had revenues of $24.5 billion and assets totaling more than $22 billion. HCA and its affiliates employ approximately 190,000 people.

Under the terms of the agreement, HCA stockholders will receive $51 in cash for each share of HCA common stock they hold, representing a premium of approximately 18% to HCA's closing share price on July 18, 2006, the last trading day prior to the rumors getting out about the potential acquisition.


Jack O. Bovender, Jr., HCA Chairman and CEO, said, "After careful analysis, the special committee and the board have endorsed this transaction as being in the best interests of our shareholders. We are very pleased to have an experienced group of investors who are committed to maintaining our company's culture of a patients-first approach to high quality, compassionate care. They are also committed to the welfare of our colleagues across the company who carry out that mission every day. These are the principles on which HCA was founded."

"This is a truly landmark deal, and we are pleased to partner with the management team led by Jack Bovender, Dr. Thomas Frist, Jr. and our fellow equity sponsors," said Stephen Pagliuca, a Managing Director at Bain Capital. "HCA is the largest and most sophisticated operator in the U.S. hospital industry, delivering high quality and cost effective healthcare as well as a track record of consistent growth. We look forward to putting our extensive healthcare experience to work in order to support management in growing this outstanding company."

Michael Michelson, a Member of KKR, stated, "HCA provides world class patient care on a unique scale in this country and is an indispensable part of the communities it serves. We are delighted to be joining with HCA's talented management, Dr. Thomas Frist, Jr., and our private equity partners to continue to build the company's franchise of high quality clinical care. KKR's experienced healthcare team looks forward to providing strong support for HCA's future growth, including continuing to invest substantial capital in its facilities."

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