NASHVILLE, Tenn. - Essent Healthcare, which acquires community hospitals and provides the financial resources and expertise to support their growth, announced a partnership with Vestar Capital Partners. The private equity firm will lead an investment group that includes Essent's founding shareholder, Thoma Cressey Equity Partners. The investment group will invest $80 million in Essent to finance the acquisition of Christus St. Joseph's Health System in Paris, Texas and recapitalize the company for future investments.

"We are attracted to Essent because its hospitals are financially sound and provide essential, high quality care to the residents of the communities they serve," said James L. Elrod Jr., managing director with Vestar's New York office. "Essent's business model is consistent with our investing strategy. We are particularly excited about becoming partners with Hud Connery and his management team."

W. Hudson Connery Jr., Essent CEO, said partnering with Vestar enhances his firm's mission of investing in healthcare providers that are deeply committed to their communities, as well as solid performers. "Essent will make acquisitions only when the strongest opportunities present themselves; and Vestar agrees that the quality of hospitals in the company's portfolio will be the measure of our success."

"We're looking forward to working with Thoma Cressey, a longstanding Essent partner and successful investor in the hospital management industry. As part of this transaction, Thoma Cressey will invest an additional $10 million in Essent in conjunction with the Christus St. Joseph's Health System acquisition," said Steven M. Silver, managing director with Vestar's New York office.

With its recent acquisition of Christus St. Joseph's Health System, Essent serves 150,000 residents in a seven-county area of Northeast Texas and Southeast Oklahoma, offering a wide array of acute care medical services.

About Vestar Capital Partners
Vestar Capital Partners is a leading investment firm specializing in management buyouts, recapitalizations and growth capital investments. Vestar's investment strategy is targeted towards middle-market companies in the U.S. and Europe with valuations in the $200 million to $2 billion range. Since the firm's founding in 1988, Vestar has completed over forty investments in companies with a total value exceeding $14 billion. These companies have varied in size and geography and span a broad range of industries. Vestar's current portfolio companies include Sheridan Healthcare, Sunrise Medical, Birds Eye Foods, FL Selenia and SAB WABCO. Vestar currently manages funds totaling approximately $4 billion and has offices in New York City, Denver, Paris and Milan. More information about Vestar is available at http://www.vestarcapital.com .

About Essent Healthcare
Essent Healthcare was founded in 1999 with the mission of acquiring community hospitals and providing them with the financial resources and the expertise they need to grow. Essent hospitals include Merrimack Valley Hospital in Haverhill, Mass., Sharon Hospital in Sharon, Conn., Nashoba Valley Medical Center in Ayer, Mass., Crossroads Regional Medical Center in Wentzville, Mo., and Paris Regional Medical Center in Paris, Texas.

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