SRZ Represents Cerberus Capital Management in Acquisition of Caritas Christi Health Care System
December 7, 2010
We represented Cerberus Capital Management, L.P. ("Cerberus") in its acquisition of Boston-based Caritas Christi Health Care ("CCHC"). The purchase of CCHC, the largest community-based health care system in New England and the 10th largest employer in Massachusetts, was made by Cerberus’ newly formed affiliate Steward Healthcare System LLC. The completed deal brings about $830 million of capital support to CCHC, including the assumption of all pension obligations for CCHC’s current and former employees, the repayment of virtually all of CCHC’s outstanding debt and a commitment to approximately $400 million of capital projects. The deal was first announced in March and was approved by the Massachusetts Supreme Judicial Court, Attorney General and Department of Public Health, as well as the Roman Catholic Archdiocese of Boston and the Vatican. CCHC, which became an independent nonprofit in 2008, was previously owned by the Roman Catholic Archdiocese of Boston. Steward Health Care System LLC will continue to operate under the Caritas Christi banner.
Marc Weingarten, Alan S. Waldenberg and David E. Rosewater were the lead partners on the transaction. The Schulte Roth & Zabel team was comprised of attorneys from the firm's Business Transactions, Employment & Employee Benefits, Environmental, Real Estate, Tax and Intellectual Property, Sourcing & Technology Groups.
This transaction was selected as Investment Dealers' Digest (IDD) magazine’s 2010 Deal of the Year award in the health care category.