Physicians Acquire 35-Hospital Health System From Private Equity Firm

Steward Health Care announced that it has structured a recapitalization transaction with Cerberus Capital Management (Cerberus) that transfers controlling interest of the company to a management group of Steward Health Care physicians led by the company's chief executive officer and founder, Ralph de la Torre, M.D. With the transaction, Steward Health Care becomes one of the largest physician-owned and operated health care systems in the United States.

As part of the recapitalization transaction, no additional leverage was added to the Company’s balance sheet and Cerberus’ controlling interest was exchanged for a convertible note. The management group . . .