HealthCare Financial Partners Inc., a Chevy Chase company that provides financing to doctors, nursing homes and other small and medium-size health providers, announced yesterday that it was being sold to Heller Financial Inc. of Chicago for about $483 million in cash and stock.
John K. Delaney, chief executive officer of HealthCare Financial Partners, said his company would continue to operate as an autonomous unit of Heller, with the same top management. He said none of the 100 jobs at the Chevy Chase headquarters would be eliminated or moved.
The acquisition price, $35 for each share of HCF stock, pushed the stock price up 16.9 percent, or $4.8125 a share, to $33.3125.
"They've bought an already powerful organization in HealthCare Financial Partners, and with Heller's strong balance sheet and lower cost of funding, they should be able to boost profitability," said Keith Menzel, an analyst at John G. Kinnard & Co. in Minneapolis.
HCF brings $533 million in assets to Heller. Combined with Heller's lending portfolio in health, the unit will have assets of more than $900 million. Delaney will be a group president for Heller, overseeing the health unit.
Heller, a lender to a broad range of businesses, will pay 59 percent of the price in cash, and issue 7.6 million shares of stock to cover the balance. Heller stock gained $1.375 a share to $27.625. The deal is expected to close in July, if approved by both boards.
HealthCare Financial Partners posted earnings of $6.1 million, up 69.6 percent from $3.6 million in the first quarter of 1998. Revenue was $17.3 million, up 40.4 percent from $12.3 million in the year-earlier period.
Bloomberg News contributed to this article.
Pub Date: 4/21/99