Key Takeaways
- • Bain Capital is set to retain its approximately 40% stake in Surgery Partners as Bon Secours Mercy Health nears a take-private of the surgical care provider, according to the Financial Times.
- • Bon Secours is in advanced negotiations to acquire a majority interest at approximately $20 per share, implying an enterprise valuation of around $6bn including roughly $3.5bn of debt.
- • The reported deal follows a failed Bain proposal last year that valued Surgery Partners at approximately $6.7bn including debt, which ended without agreement.
- • Surgery Partners' shares have fallen about 31% over the past year, leaving an equity valuation of around $2.1bn before the reported offer.
- • The transaction would expand Bon Secours' outpatient footprint and follows Ascension's $3.9bn acquisition of Amsurg earlier this year, reflecting continued consolidation in US healthcare services.
Summary
Bain Capital is set to retain its approximately 40% stake in Surgery Partners as US healthcare operator Bon Secours Mercy Health nears a takeover of the surgical care provider at an enterprise valuation of around $6bn, according to a report by the Financial Times. Bon Secours is in advanced negotiations to acquire a majority interest in the publicly listed company at approximately $20 per share, with an agreement potentially announced as early as Monday.
The proposed transaction would reportedly value Surgery Partners at roughly $6bn including its $3.5bn debt burden. Bain, which has held a minority interest in the company since 2017, would remain invested following the take-private rather than exiting its position. The structure would leave Bain as a continuing shareholder alongside Bon Secours in the privatised company.
The negotiations follow an unsuccessful attempt by Bain to acquire the remaining shares in Surgery Partners last year. That proposal valued the business at approximately $6.7bn including debt, but discussions ended without an agreement. Surgery Partners' shares have fallen roughly 31% over the past year, leaving the company with an equity valuation of around $2.1bn before the reported offer.
Surgery Partners operates 176 surgical centres and hospitals across 30 US states, specialising in outpatient procedures and related healthcare services. An acquisition would significantly expand Bon Secours' presence in outpatient care, an area attracting growing investment from healthcare operators seeking to diversify beyond traditional hospital services. Bon Secours operates 47 hospitals across the US and Ireland and reportedly generated approximately $14bn in revenue last year.
The transaction would also follow Ascension's $3.9bn acquisition of surgical care provider Amsurg earlier this year, reflecting continued consolidation in the US healthcare services market. Bon Secours has been active in private equity-backed deals, including its minority investment in healthcare payments software company Ensemble, which earlier this year agreed to sell a majority stake to Thoreau Group at an $11.75bn valuation.
The proposed transaction would reportedly value Surgery Partners at roughly $6bn including its $3.5bn debt burden. Bain, which has held a minority interest in the company since 2017, would remain invested following the take-private rather than exiting its position. The structure would leave Bain as a continuing shareholder alongside Bon Secours in the privatised company.
The negotiations follow an unsuccessful attempt by Bain to acquire the remaining shares in Surgery Partners last year. That proposal valued the business at approximately $6.7bn including debt, but discussions ended without an agreement. Surgery Partners' shares have fallen roughly 31% over the past year, leaving the company with an equity valuation of around $2.1bn before the reported offer.
Surgery Partners operates 176 surgical centres and hospitals across 30 US states, specialising in outpatient procedures and related healthcare services. An acquisition would significantly expand Bon Secours' presence in outpatient care, an area attracting growing investment from healthcare operators seeking to diversify beyond traditional hospital services. Bon Secours operates 47 hospitals across the US and Ireland and reportedly generated approximately $14bn in revenue last year.
The transaction would also follow Ascension's $3.9bn acquisition of surgical care provider Amsurg earlier this year, reflecting continued consolidation in the US healthcare services market. Bon Secours has been active in private equity-backed deals, including its minority investment in healthcare payments software company Ensemble, which earlier this year agreed to sell a majority stake to Thoreau Group at an $11.75bn valuation.
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