Private Equity Firm KKR Snaps Up Physician Provider Envision In Massive $5.57B Deal
Envision contracts with hospitals and health systems to provide doctors and clinicians for emergency medicine, anesthesiology and radiology, among other specialties. It also owns 261 surgery centers and a surgical hospital.
Reuters:
KKR To Take Envision Private For $5.57 Billion In Healthcare Push
KKR & Co said on Monday it will buy Envision Healthcare Corp, one of biggest U.S. providers of physicians to hospitals, in a deal valued at $5.57 billion as it builds up its healthcare portfolio. The private equity firm beat peers Carlyle Group, TPG Global and others as it sealed the deal for $46 per share - a premium of 5.4 percent to Envision's last close on Friday. (Saxena, 6/11)
The Associated Press:
KKR Is Buying Envision Healthcare In A Nearly $10B Deal
Nashville, Tennessee-based Envision announced last fall that it would review its strategic options. Envision said Monday that its board and financial advisers looked at acquisitions, contacted 25 potential buyers and considered keeping Envision as a stand-alone business. They determined that the KKR deal offered the best chance to maximize shareholder value. The companies said the share price in this deal is a 32-percent premium to the volume-weighted average price the day after the company said it would review strategic options. (6/11)
Modern Healthcare:
Envision Healthcare To Be Acquired By KKR
Envision's national footprint makes it an attractive asset for a private equity firm. Physician services firms are usually not capital intensive and they generate cash flow, analysts said. Envision also owns more than 250 outpatient surgery centers. Many companies are looking to invest in ambulatory care as health insurers encourage patients to seek care away from expensive inpatient settings. (Livingston, 6/11)
Bloomberg:
KKR Will Buy Envision Healthcare For $5.57 Billion Plus Debt
Last year, KKR finished raising money for a $1.45 billion health-care fund dedicated to growth stage companies. Health insurance and services giant UnitedHealth has acquired a string of medical practices, and drugstore chain CVS Health Corp. is buying insurer Aetna Inc., with the goal of making CVS’s retail locations hubs for health services. In 2016 Blackstone ended its three-year public-to-private buyout drought with an agreement to buy Team Health Holdings Inc, another health-care staffing company. “Envision is a leading provider of physician-led services in a health-care system in which physician-patient interactions have a pronounced impact on nearly all health-care decisions,” Jim Momtazee, KKR’s head of health-care investing, said in the statement. “We are excited to partner with the outstanding team.” (Mittelman, 6/11)
