Regional Health Properties merges with Sunlink Health Systems
Georgia-based companies Regional Health Properties and SunLink Health Systems have announced their plans to merge, forming a combined company with a strengthened balance sheet and increased scale. The merger, approved by both companies’ boards, is expected to be finalized this spring.
Regional Health Properties operates 11 senior living and care facilities with a total of 1,201 beds. SunLink will merge into Regional Health Properties, with SunLink shareholders owning about 43% of the new entity.
Following the completion of the merger, Brent Morrison will retain his position as President and CEO of the combined company, while Robert M. Thornton Jr. will serve as Executive Vice President – Corporate Strategy, and Mark Stockslager as Chief Financial Officer.
SunLink’s assets, which include a pharmacy business, cash reserves, and a debt-free balance sheet, will be integrated with Regional Health Properties’ established skilled nursing and senior living facilities. The merger is expected to deliver pre-tax cost synergies of approximately $1 million by the end of fiscal year 2026, with additional operational efficiencies possible upon the completion of the integration process.
For each five shares of SunLink common stock, Regional Health Properties will issue one share of its common stock and one share of its Series D preferred stock, totaling around 1.4 million shares of each to SunLink’s shareholders. SunLink, as of December 31, had total assets of $17.6 million and no long-term debt.
The combined company is poised for future growth and increased value for shareholders, fueled by the strategic merger of assets and resources between Regional Health Properties and SunLink Health Systems.
