Federal antitrust regulators said Thursday they have approved the sale of HealthSouth Corp.'s surgery division to Texas Pacific Group, a private equity firm, for $920 million in cash plus an equity stake in the surgery business.
According to a Federal Trade Commission notice issued Thursday, the government has completed its investigation of the sale and ended a waiting period on the transaction.
HealthSouth announced the sale of the division to TPG Partners V LP in March, as part of a restructuring after emerging from a major financial scandal.
HealthSouth estimates the stake will be worth $25 million to $30 million in five years, increasing its estimate of the transaction's value to about $945 million.
HealthSouth is trying to recover from a $2.7 billion accounting fraud that drove it to the edge of bankruptcy. The Birmingham-based chain plans to focus solely on post-acute care in the future.
Shares of HealthSouth rose 2 cents to $20.73 in morning trading on the New York Stock Exchange.
