TORONTO, July 2, 2015 /CNW/ - Medical Facilities Corporation ("Medical Facilities" or the "Company") (TSX: DR), announced today that it has completed the previously announced sale of the surgical hospital owned by Dakota Plains Surgical Center LLP ("DPSC"), located in Aberdeen, South Dakota, to Avera St. Luke's ("Avera") for gross proceeds of approximately US$36.9 million (approximately US$24.0 million gross proceeds for Medical Facilities, reflecting its 65 percent ownership of the facility).
"We are pleased to complete this transaction," said Dr. Donald Schellpfeffer, CEO of Medical Facilities. "Going forward, Medical Facilities will have a strengthened balance sheet which will enhance our opportunities for accretive acquisitions that meet our strategic goals."
About Medical Facilities
Medical Facilities owns controlling interests in five specialty surgical hospitals located in Arkansas, Oklahoma and South Dakota, as well as an ambulatory surgery center in California. The specialty hospitals perform scheduled surgical, imaging, diagnostic and other procedures, including urgent and primary care, and derive their revenue from the fees charged for the use of their facilities. The ambulatory surgery center specializes in outpatient surgical procedures, with patient stays of less than 24 hours. Medical Facilities is structured so that a majority of its free cash flow from operations is distributed to the holders of its common shares in the form of dividends. For more information, please visit www.medicalfacilitiescorp.ca.
Caution Concerning Forward-looking Statements
Statements made in this news release, other than those concerning historical financial information, may be forward-looking and therefore subject to various risks and uncertainties. Some forward-looking statements may be identified by words like "may", "will", "anticipate", "estimate", "expect", "intend", or "continue" or the negative thereof or similar variations. Certain material factors or assumptions are applied in making forward-looking statements and actual results may differ materially from those expressed or implied in such statements. Factors that could cause results to vary include those identified in Medical Facilities' filings with Canadian securities regulatory authorities such as legislative or regulatory developments, intensifying competition, technological change and general economic conditions. All forward-looking statements presented herein should be considered in conjunction with such filings. Medical Facilities does not undertake to update any forward-looking statements; such statements speak only as of the date made.
SOURCE Medical Facilities Corporation
For further information: Michael Salter, Chief Financial Officer, Medical Facilities Corporation, 416.848.7380 or 1.877.402.7162, [email protected]; Renée Lam, Investor Relations, TMX Equicom, 416.815.0700 or 1.800.385.5451 ext. 258, [email protected]