-- 2007 combined revenue of approximately $365 million; and
-- The combined company has developed or constructed:
-- 1,500 medical office buildings;
-- 160 multi-specialty medical facilities;
-- 700 specialty centers;
-- 135 ambulatory surgery centers; and
-- 1,000 rural hospitals and health centers in all 48 continental
"By serving an expanded client base, we believe this merger will create significant shareholder value over the long term," said Spencer.
Scott Ransom, President and CEO of Marshall Erdman and Associates will continue to lead Erdman, reporting to Spencer. Management will otherwise remain unchanged in both firms.
"Erdman was seeking a strategic partner in healthcare real estate and selected Cogdell Spencer, a pioneer in healthcare development, physician ownership, and asset and property management," said Ransom. "In partnering with Cogdell Spencer, we have positioned the company for continued growth through expansion of services and strengthening of client relationships."
Cogdell Spencer will finance the acquisition through the following
-- A $100 million term loan arranged by KeyBank National Association with
participation from Bank of America, N.A., Branch Banking and Trust
Company, M&I Marshall & Ilsley Bank and Wachovia Bank, N.A.;
-- An $85 million rollover of equity held by Marshall Erdman's principal
shareholders (Baird Capital Partners and Lubar & Co.) and members of
its management team; and
-- Borrowings under a new $150 million secured line of credit arranged by
Bank of America, N.A. with participation from KeyBank National
Association, Branch Banking and Trust Company, M&I Marshall & Ilsley
Bank and Wachovia Bank, N.A.
Separately, Cogdell Spencer announced today that it has pri
|SOURCE Cogdell Spencer Inc.|
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