Surgery Partners Completes Acquisition of National Surgical Healthcare
31 August 2017 - 5:40PM
Combination creates leading independent surgery
company with strong musculoskeletal programs
Surgery Partners, Inc. (NASDAQ:SGRY) ("Surgery Partners"), a
leading healthcare services company, today announced that it has
successfully completed its previously announced acquisition of
National Surgical Healthcare (“NSH”), an owner and operator of
surgical facilities in partnership with local physicians.
On May 9, 2017, Surgery Partners announced a definitive merger
agreement under which Surgery Partners would acquire NSH from
Irving Place Capital for approximately $760 million. The
combination of Surgery Partners and NSH creates an enterprise with
125 surgical facilities across 32 states, with a strong presence in
musculoskeletal programs, including orthopedics, pain and
spine. In addition, the combined company operates a network
of over 5,000 physicians and ancillary services, resulting in a
diversified surgical provider.
"With the addition of National Surgical Healthcare, Surgery
Partners has strengthened its position as the nation’s largest
independent provider of outpatient surgical services. This
transaction also enhances our focus on musculoskeletal specialties,
where we anticipate significant growth as commercial payors and
Medicare look to transition more procedures to the outpatient
setting," said Mike Doyle, Chief Executive Officer of Surgery
Partners. “I would like to welcome the NSH team and
physicians and look forward to working together to further develop
our network healthcare services."
Financing for the deal consists of Surgery Partners’ recently
completed offering of $370 million in 6.750% senior unsecured notes
due 2025, a new $1.29 billion term loan and a new preferred
security purchased by Bain Capital Private Equity. At
closing, the Company remains well capitalized with sufficient
liquidity to fund both internal and acquisition driven growth
initiatives, with cash on the balance sheet in excess of $180
million, in addition to a revolver entirely undrawn at close.
Simultaneously with the closing of this transaction, Bain
Capital Private Equity, as previously announced, has completed its
purchase of H.I.G. Capital’s 54% stake in Surgery Partners at $19
per share.
Jefferies LLC acted as the exclusive financial advisor to
Surgery Partners and provided committed financing to the company
for the transaction. Ropes & Gray LLP served as legal
counsel to Surgery Partners, and PwC LLP has acted as accounting
advisor to Surgery Partners and Bain Capital Private Equity.
Kirkland & Ellis LLP acted as legal counsel to Bain Capital
Private Equity. J.P. Morgan Securities LLC acted as financial
advisor to NSH, and Weil, Gotshal & Manges LLP as legal advisor
to NSH and Irving Place Capital.
About Surgery PartnersHeadquartered in
Nashville, Tennessee, Surgery Partners is a leading healthcare
services company with a differentiated outpatient delivery model
focused on providing high quality, cost effective solutions for
surgical and related ancillary care in support of both patients and
physicians. Founded in 2004, Surgery Partners is one of the
largest and fastest growing surgical services businesses in the
country. With the addition of National Surgical Healthcare,
the company now operates more than 180 locations in 32 states,
including ambulatory surgical facilities, surgical hospitals, a
diagnostic laboratory, multi-specialty physician practices and
urgent care facilities.
About Bain Capital Private Equity Bain Capital
Private Equity (www.baincapitalprivateequity.com) has partnered
closely with management teams to provide the strategic resources
that build great companies and help them thrive since our founding
in 1984. Our team of more than 220 investment professionals
creates value for our portfolio companies through our global
platform and depth of expertise in key vertical industries,
including industrials, consumer/retail, financial and business
services, healthcare, and technology, media and telecommunications.
We have a history of successful investments across a broad
range of healthcare sectors including service providers,
facilities, life sciences, devices, and distribution. Our
experience owning industry leading facilities-based healthcare
businesses includes HCA Healthcare, Acadia Healthcare Company, Air
Medical Group Holdings, Grupo NotreDame Intermedica and Aveanna
Healthcare, among others. In addition to private equity, Bain
Capital invests across asset classes including credit, public
equity and venture capital, and leverages the firm’s shared
platform to capture opportunities in strategic areas of focus.
Forward-Looking StatementsThis press release
contains forward-looking statements within the meaning of the
Private Securities Litigation Reform Act of 1995, including
statements regarding certain growth and liquidity expectations.
These forward-looking statements involve certain risks and
uncertainties that could cause actual results to differ materially
from those expressed or implied by these statements. These
forward-looking statements speak only as of the date of this
release. We expressly disclaim any obligation or undertaking to
disseminate any updates or revisions to any forward-looking
statement contained herein to reflect any change in our
expectations with regard thereto or any change in events,
conditions or circumstances on which any such statement is
based.
Contacts:
Surgery Partners, Inc.
Teresa Sparks, Chief Financial Officer
(615) 234-8940
IR@surgerypartners.com
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