Title

SSG Advises CHI St. Luke's Health Emergency Center, LLC in the Sale of its Minority Shareholder's Equity Interests to its Majority Shareholder, St. Luke's Health System Holdings
June 2017
has purchased the remaining
equity interests of
CHI St. Luke’s Health
Emergency Center, LLC
The undersigned acted as Investment Banker
to CHI St. Luke’s Health Emergency
Center, LLC on this transaction

Body

SSG Capital Advisors, LLC ("SSG") acted as the co-investment banker to CHI St. Luke's Health Emergency Center, LLC ("ER Center" or the "Company") in a transaction involving the Company's minority shareholder selling its equity interests to the Company's majority shareholder, St. Luke's Health System Holdings, Inc. ("St. Luke's"). The transaction closed in June 2017.

ER Center was formed in 2016 as a joint venture between a group of physicians and St. Luke's to operate several freestanding emergency departments ("FSEDs") throughout the greater Houston, Texas area. The FSEDs provide a variety of emergency services such as comprehensive adult & pediatric emergency care, clinical staff with emergency room experience, on-site emergency laboratory services, radiology services and on-site surgical procedures.

Lower-than-expected patient volumes and reimbursement-related issues led the Company to explore its strategic alternatives. SSG was retained as co-investment banker along with Statesman Business Advisors, LLC ("Statesman") to explore the Company's options, including a sale of all or parts of the business. SSG ran a comprehensive sale process that generated significant interest from the market, with St. Luke's offer for the remainder of the equity in the joint venture ultimately being the solution which provided the best outcome to all stakeholders.

Other professionals who worked on the transaction include:

• William H. Jaco, III and James D. Briggs of Statesman Business Advisors, LLC, co-investment bankers to CHI St. Luke's Health Emergency Center, LLC;
• Steven D. Kesten and Lawrence E. Wilson of BoyarMiller, counsel to CHI St. Luke's Health Emergency Center, LLC minority shareholder; and
• E. William Langley of Langley, O'Grady & Associates, P.C., third-party accountant to CHI St. Luke's Health Emergency Center, LLC minority shareholder.

CONTACTS ON THIS DEAL

Contacts On This Deal

Mark E. Chesen
Managing Director
Email: mchesen@ssgca.com
Phone: (610) 940-5801
Matthew P. Karlson
Managing Director
Email: mkarlson@ssgca.com
Phone: (610) 940-5804
Neil Gupta, CFA
Director
Email: ngupta@ssgca.com
Phone: (610) 940-2663
Brian A. McAuley
Analyst
Email: bmcauley@ssgca.com
Phone: (610) 940-6067