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Private equity firm KKR inks $9.9B deal for Envision: 4 things to know

New York City-based private equity firm KKR & Co. has entered a definitive agreement to acquire Envision Healthcare, a Nashville, Tenn.-based physician services provider, in an all-cash transaction for approximately $9.9 billion, including the assumption of debt.

Here are four things to know:

1. Under the deal, KKR will acquire Envision for $46 per share, representing a 5 percent premium over Envision's closing price of $43.64 on June 8, according to The Wall Street Journal.

2. During the last seven months, Envision's board reviewed a number of strategic alternatives. The board's outreach involved 25 potential hospital buyers, with KKR's proposal presenting Envision the best opportunity to enhance value for shareholders.

3. The parties expect the transaction, which is subject to regulatory approvals, to close in the fourth quarter of this year. Once the deal closes, Envision will become a private company and its stock will no longer be traded on the New York Stock Exchange.4

4. KKR wasn't the only private equity firm interested in acquiring Envision. Sources told Reuters in May that a consortium of Washington, D.C.-based Carlyle Group and San Francisco-based TPG Global submitted bids for the company. Nashville, Tenn.-based HCA Healthcare was also reportedly interested in taking over Envision's AmSurg ambulatory surgery division.

More articles on healthcare industry transactions:

CHS continues hospital sell-off spree with deals in Louisiana, Tennessee
HCA could soon own 53 hospitals in Texas
Cone Health, Randolph Health merger is off

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