Key Takeaways
- • Surgery Partners (SGRY.O) agreed to be taken private by HealthSpan Partners, an affiliate of nonprofit hospital system Bon Secours Mercy Health, in a deal valued at about $5.7 billion including debt, according to Reuters.
- • Remaining shareholders will receive $23.50 per share, a 49% premium to the stock's last close; shares rose 46%.
- • Bain Capital, which owns 39% of Surgery Partners and has been a minority shareholder since 2017, will back the deal and retain a major ownership stake after closing.
- • The transaction is expected to close in the first quarter of 2027 and ends a two-year strategic review; Bain's earlier take-private bid last year was rebuffed.
- • Surgery Partners generated $3.31 billion in revenue in 2025 and reported adjusted EPS of 47 cents.
Summary
Surgery Partners said on Monday, October 26, that it would be taken private by HealthSpan Partners, an affiliate of nonprofit hospital system Bon Secours Mercy Health, in a transaction valued at about $5.7 billion including debt, according to Reuters. The stock rose 46% on the news. Shareholders other than Bain Capital will receive $23.50 per share, a premium of 49% to the last close.
Bain Capital, a private equity firm that has held a minority stake since 2017 and owns 39% of Surgery Partners, will back the deal and keep a significant ownership position after closing, the companies said. Reuters reported that Bain's earlier bid to take the company private last year had been rebuffed. The agreement concludes a two-year strategic review during which Surgery Partners attracted interest from several potential buyers. The deal is expected to close in the first quarter of 2027.
The transaction expands Bon Secours Mercy Health's US footprint well beyond its more than 45 hospitals, adding more than 200 sites across 30 states and about 5,000 affiliated physicians, according to the health system. Surgery Partners operates outpatient surgery centers, short-stay hospitals and related services across the US. In 2025 it generated $3.31 billion in revenue and reported adjusted profit of 47 cents per share.
The deal reflects a broader push into outpatient surgery by healthcare operators. Reuters noted that not-for-profit Ascension had earlier this year acquired surgical firm AmSurg for $3.9 billion. Mizuho analyst Ann Hynes said there is some market overlap in Ohio and Kentucky but does not expect meaningful FTC antitrust risk, and that Bain's continued ownership stake should help the deal close.
Bain Capital, a private equity firm that has held a minority stake since 2017 and owns 39% of Surgery Partners, will back the deal and keep a significant ownership position after closing, the companies said. Reuters reported that Bain's earlier bid to take the company private last year had been rebuffed. The agreement concludes a two-year strategic review during which Surgery Partners attracted interest from several potential buyers. The deal is expected to close in the first quarter of 2027.
The transaction expands Bon Secours Mercy Health's US footprint well beyond its more than 45 hospitals, adding more than 200 sites across 30 states and about 5,000 affiliated physicians, according to the health system. Surgery Partners operates outpatient surgery centers, short-stay hospitals and related services across the US. In 2025 it generated $3.31 billion in revenue and reported adjusted profit of 47 cents per share.
The deal reflects a broader push into outpatient surgery by healthcare operators. Reuters noted that not-for-profit Ascension had earlier this year acquired surgical firm AmSurg for $3.9 billion. Mizuho analyst Ann Hynes said there is some market overlap in Ohio and Kentucky but does not expect meaningful FTC antitrust risk, and that Bain's continued ownership stake should help the deal close.
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