Cornerstone Healthcare Group Announces Agreement to Acquire TrinityCare Senior Living

DALLAS, TX and HOUSTON, TX--(Marketwired - Dec 15, 2014) - Cornerstone Healthcare Group ("Cornerstone" or "CHG"), a private company owned by funds managed by Highland Capital Management, L.P., today announced the company has entered into an agreement to acquire the operations of TrinityCare Senior Living ("TrinityCare") for cash and assumed debt of $27 million. A subsidiary of University General Health System, Inc. (OTCQB: UGHS), TrinityCare develops, owns, operates and manages independent living, assisted living and memory care facilities in Texas, Tennessee and Georgia. Financial terms of the transaction were not disclosed. 

Founded in 1990, Cornerstone operates Long Term Acute Care (LTAC) Hospitals, with nineteen locations in the United States. Cornerstone specializes in the treatment of medically complex patients who require individualized, interdisciplinary acute care for an extended period of time.

"We are pleased to add TrinityCare's services to our senior care platform," stated David Smith, President and CEO of Cornerstone. "The Southwest and Southeast regions of the United States continue to represent underserved markets for senior care, and this acquisition will expand our network while enabling us to continue to offer our patients best-in-class services."

Cornerstone will operate its senior living business under the TrinityCare name. Donald W. Sapaugh, founder of TrinityCare Senior Living and current President of University General Health System, Inc., will join Cornerstone as President and Chief Executive Officer of Cornerstone's senior living division. After the closing of the transaction, Mr. Sapaugh will resign as President of University General Health System but will remain as a board member and Chairman of the Capital Markets Committee.

"As TrinityCare continues to develop and grow as a company, we are thrilled to take this transformative step by joining the Cornerstone platform," commented Mr. Sapaugh. "Cornerstone has built a well-respected national business model that is known for its high quality patient care and knowledgeable staff."

"We are constantly evaluating opportunities to source new investments for the Cornerstone platform," commented Matt Jameson, Managing Director at Highland Capital Management L.P. and member of Cornerstone's Board of Directors. "With the rapid expansion of the elderly population in the United States, this acquisition positions Cornerstone to pursue an aggressive growth strategy in the senior living and senior care space."