Glenview Capital Boosts Stake in HealthSouth Corp (HLS) to 6.5%

Recently, HealthSouth Corp (NYSE:HLS) signed an agreement to acquire the operations of Reliant Hospital Partners, LLC and affiliated entities for $730 million in cash. Reliant is an operator of a portfolio of 11 inpatient rehabilitation hospitals in Texas, Massachusetts and Ohio. It also operates three inpatient satellite locations in Massachusetts, according to a news release. The deal, approved by both companies’ boards of directors, is expected to close in 2015.

HealthSouth Corp (NYSE:HLS) posted strong financial results for the second quarter ended June 30, 2015. The company’s revenues increased by 26.5% on the year to $764.40 million. Income from continuing operations attributable to HealthSouth Corp (NYSE:HLS) was $0.47 per share, versus $0.81 for the second quarter last year. Adjusted EBITDA for the quarter was $169.5 million, up from $152.7 million in the same period last year. Last month, HealthSouth Corp (NYSE:HLS)’s board of directors approved a 9.5% increase in the company’s quarterly common stock dividend to $0.23 per share. For a full-year 2015, HealthSouth Corp (NYSE:HLS) revised its EPS guidance to a range of $2.11 to $2.17 per share from $2.13 to $2.19 per share, to include about $3 million of transaction costs incurred to date related to its pending acquisition of Reliant. The stock has gained almost 18% since the beginning of the year.

Among the investors we track at Insider Monkey, another shareholder of HealthSouth is Mariko Gordon’s Daruma Asset Management, which held 1.95 million shares of HealthSouth Corp (NYSE:HLS), followed by Osterweis Capital Management, led by John Osterweis, which owns 1.14 million HealthSouth Corp (NYSE:HLS) shares as of the end of March 31.

Disclosure: none