SunLink sells Memorial Hospital and Convalescent Center in Adel

SunLink Health Systems, Inc. (NYSE:MKT: SSY) today announced that it completed the sale of its Memorial Hospital of Adel and Memorial Convalescent Center to The Hospital Authority of Tift County, Georgia for approximately $8,350,000. The company expects to recognize an after tax gain of approximately $1,700,000 on the transaction in its first fiscal quarter ending September 30, 2012. Proceeds of the sale of approximately $7,500,000 were used to pay-down SunLink's senior credit facility.

Robert M. Thornton, Jr., chairman and chief executive officer of SunLink, commented, "This sale to a strong regional healthcare system will greatly enhance Memorial's position in its South Georgia market. The sale also allows SunLink to repay substantial high-cost debt and to concentrate on several of our key corporate and operational objectives which we believe will enhance the value inherent in our hospital portfolio by allowing us to more sharply focus on our core operating strategy of being a quality healthcare provider to exurban and rural communities in which the company's other facilities are located. We are confident this sale should significantly benefit SunLink and its shareholders."