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HealthSpan to buy Surgery Partners in $5.7 billion take-private deal
HealthSpan Partners, affiliated with Bon Secours Mercy Health, agreed Monday to acquire Surgery Partners for about $5.7 billion, taking the outpatient surgery operator private, the companies said.
- Business Wire is now reporting this
- New headline Was: “HealthSpan to take Surgery Partners private in $5.7 billion deal”
- Our desk filed its story
HealthSpan Partners, a supporting organization affiliated with not-for-profit Bon Secours Mercy Health, agreed Monday to acquire Surgery Partners Inc. in a transaction valued at about $5.7 billion in enterprise value, taking the outpatient surgery company private1,2.
Under the companies' announcement, Surgery Partners shareholders other than affiliates of Bain Capital Private Equity would receive $23.50 in cash per share2. Reuters said that price implied a 49% premium to the stock's last close and that shares were halted in premarket trading1.
Bain Capital, Surgery Partners' largest shareholder with about 39% of outstanding shares since 2017, agreed to vote its shares for the transaction1,2. Bain would roll its shares into equity in the acquiring entity and remain a significant partner with HealthSpan after closing, the companies said2.
Surgery Partners, based in Brentwood, Tennessee, operates a national network of ambulatory surgery centers, surgical hospitals and physician partnerships, with more than 200 locations in 30 states and about 5,000 affiliated physicians, according to the announcement2. Specialties listed include orthopedic and spinal care, cardiology, gastroenterology and ophthalmology2.
Reuters said the agreement ends a two-year strategic review in which Surgery Partners drew interest from potential buyers including Bain, whose bid to take the company private last year was rebuffed1.
HealthSpan said it intends to finance the purchase with cash on hand and new debt for which commitments have been secured2. Closing is expected in the first quarter of 2027, subject to Surgery Partners shareholder approval, regulatory approvals and other customary conditions1,2.
A special committee of independent Surgery Partners directors led the talks, and the board approved the deal after the committee's unanimous recommendation, the companies said2. After closing, Surgery Partners' name, brand and headquarters are expected to remain, and the company is expected to remain a secular organization, not characterized as a Catholic ministry entity2.
After closing, Surgery Partners' common stock is expected to no longer be listed on Nasdaq, and the company is expected to remain a privately held secular organization, not characterized as a Catholic ministry entity, the companies said2.
Sources
How it’s being reported
2 sourcesFirst reported by Business Wire
HealthSpan Partners to Acquire Surgery Partners, Establishing a Leading Outpatient Surgical Care Platform
Definitive agreement, $23.50 cash per share for non-Bain holders, Bain remaining a partner, and closing conditions.
Company announcement of an all-cash take-private at about $5.7 billion enterprise value, with Bain rolling equity.
Leaves out Premarket trading halt and last year's rebuffed Bain bid as reported by Reuters.
HealthSpan to take Surgery Partners private in $5.7 billion deal
Leads with a figure in the headline.
Where they agree
- HealthSpan will take Surgery Partners private in a deal valued at about $5.7 billion.
- Public shareholders would receive $23.50 a share in cash.
- Bain Capital owns about 39% and has agreed to vote its shares in favor.
- Closing is expected in the first quarter of 2027.
Where they differ
How Bain's stake is treated after closing