A Medical Device Daily

ICF International (Fairfax, Virginia) reported that it has closed on the acquisition of Macro International (Calverton, Maryland), an advisory, implementation, and evaluation services firm providing research-based solutions to U.S. federal government agencies in health and other areas. The purchase price was about $155 million.

McGrath North Mullin & Kratz, and Arent Fox acted as ICF's legal counsel on the transaction. RSM McGladrey, conducted financial and tax due diligence.

Macro provides research and evaluation, management consulting, marketing communications, and information services to key agencies of the federal government.

ICF partners with government and commercial clients to deliver professional services and technology solutions in the energy and climate change; environment and infrastructure; health, human services, and social programs; and homeland security and defense markets.

In other dealmaking news:

• Mednax (Fort Lauderdale, Florida) reported that it has completed two separate physician group practice acquisitions, a neonatal group practice based in the Hampton Roads region of Virginia, and a pediatric cardiology practice serving patients in El Paso, Texas.

The physicians joining as a result of both transactions will practice as part of Mednax's Pediatrix Medical Group, a national medical group.

Hampton Roads Neonatology (Hampton Roads, Virginia) includes three physicians and six nurse practitioners who staff the Level III neonatal intensive care unit (NICU) and well-baby nursery at Riverside Regional Medical Center (Newport News, Virginia). Annual patient volume is about 7,000 NICU patient days and 8,000 newborn nursery patient days.

Mednax also completed the acquisition of Schuster Heart Center (El Paso, Texas), a pediatric cardiology practice, effective Feb. 27.

Jeffrey Schuster, MD, is the founder and sole physician in the practice, which provides a range of cardiology services to pediatric patients, as well as fetal echocardiography services to patients throughout El Paso. Shuster has been providing patient care services in El Paso since 1990.

Mednax paid cash for the practices, which are expected to contribute immediately to the company's earnings. No additional terms of the transaction were disclosed.

Mednax is a national medical group that comprises what it terms the nation's leading provider of neonatal, maternal-fetal and pediatric physician subspecialty services as well as anesthesia services.

• Tenet Healthcare (Dallas) reported that company subsidiaries have completed the previously disclosed sales of USC University Hospital and Kenneth Norris Jr. Cancer Hospital to the University of Southern California (all Los Angeles) (Medical Device Daily, Feb. 11, 2009).

The transaction is expected to generate cash proceeds of $275 million from the sale of property and equipment. From these proceeds, $30 million will be deferred and placed in an escrow account for up to four years. In addition, Tenet's subsidiaries will retain substantially all of the hospitals' working capital, which is expected to result in about $35 million of incremental cash proceeds. Tenet said it expects to use the proceeds for general corporate purposes.

USC has committed to offer employment to all or substantially all current employees who are in good standing. The transaction is subject to conditions and regulatory approvals that must be satisfied prior to closing. The closing, which is not conditional on financing, is targeted for completion by March 31. As part of the transaction, Tenet and USC will drop all litigation pending between them.

Tenet said it expects to record an impairment charge of about $40 million, pre-tax and after-tax, in discontinued operations in 4Q08 related to the sale.

Tenet owns and operates acute-care hospitals and related ancillary healthcare businesses, which include ambulatory surgery centers and diagnostic imaging centers.

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