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 publicly listed surgical care provider at an enterprise valuation of around $6bn, according to Private Equity Wire. Bon Secours is in advanced negotiations to acquire a majority interest in Surgery Partners at approximately $20 per share, and an agreement could be announced as early as Monday, according to Private Equity Wire.
Deal terms and valuation details
The proposed transaction would reportedly value Surgery Partners at roughly $6bn including its $3.5bn debt burden, according to Private Equity Wire. The reported per-share price under discussion is approximately $20 per share, and the potential announcement timing cited is as early as Monday.
Bain Capital, which has held a minority interest in Surgery Partners since 2017, would remain invested following the take-private rather than exiting its position. Bain is expected to retain its approximately 40% stake as Bon Secours moves toward acquiring a majority interest.
Background: Bain’s prior attempt and current negotiations
The current negotiations follow an unsuccessful attempt by Bain to acquire the remaining shares in Surgery Partners last year. That earlier proposal valued the business at approximately $6.7bn including debt, but discussions ended without an agreement.
Surgery Partners’ shares have fallen approximately 31% over the past year, leaving the company with an equity valuation of around $2.1bn before the reported offer.
Surgery Partners footprint and Bon Secours scale
Surgery Partners operates 176 surgical centres and hospitals across 30 US states, specialising in outpatient procedures and related healthcare services. Bon Secours Mercy Health operates 47 hospitals across the US and Ireland and reportedly generated approximately $14bn in revenue last year.
Bon Secours has also been active in private equity-backed transactions, including its investment in healthcare payments software company Ensemble. Earlier this year, Ensemble agreed to sell a majority stake to Thoreau Group at an $11.75bn valuation, with Bon Secours retaining a minority interest.
Sector deal context cited in the report
The report says the acquisition would significantly expand Bon Secours’ presence in outpatient care, which it describes as an area attracting growing investment from healthcare operators seeking to diversify beyond traditional hospital services. The transaction would also follow Ascension’s $3.9bn acquisition of surgical care provider Amsurg earlier this year, which the report characterises as part of continued consolidation across the US healthcare services market.
