Surgery Center Holdings, backed by H.I.G. Capital, has agreed to acquire Crestview Partners-backed Symbion Holdings Corporation for a total purchase price of $792 million. The deal is subject to closing conditions and regulatory approvals. The combination will create a portfolio of about 100 healthcare facilities.
Surgery Center Holdings Inc. (“Surgery Partners” or “The Company”), a portfolio company of H.I.G. Capital, LLC (“H.I.G.”), and Symbion Holdings Corporation (“Symbion”), a portfolio company of Crestview Partners, have announced that they have entered into a definitive merger agreement under which Surgery Partners will acquire 100% of the stock of Symbion for a total purchase price of $792 million. The transaction is subject to customary closing conditions and required regulatory approvals.
The transaction combines two best in class organizations, creating a portfolio of approximately 100 healthcare facilities and complementary ancillary services. The combined business will be one of the leading independent Ambulatory Surgery Center (“ASC”) operators in the country, providing patients with high quality, low-cost surgical services. In addition to surgical services, the businesses operate numerous outpatient ancillary lines of care, including anesthesia, lab testing, radiation oncology, pharmacy, urgent care, and physician services. Surgery Partners and Symbion expect the combination will enhance its ability to offer patients a wide array of these complimentary services. The combined company will operate facilities in 27 states and remain focused on providing high quality, low-cost clinical services from over 2,400 physicians to over 500,000 patients annually.
“We are excited about the opportunity to expand the reach of our healthcare delivery model. Our model focuses on high quality, patient-centric care, through multiple inpatient and outpatient services lines, and now has the opportunity to apply it to a larger geographic footprint as a result of this combination,” said Mike Doyle, Chief Executive Officer of Surgery Partners. “The acquisition of Symbion provides an opportunity to build a larger, diversified portfolio of assets while also offering a compelling integrated care model which drives efficiency by cost effective design. We look forward to supporting the needs of our new physician and employee partners at Symbion as they continue their successful expansion with us.”
“We are proud of the accomplishments of Surgery Partners under H.I.G.’s ownership and the leadership of Mike Doyle and his outstanding team,” said Chris Laitala, Managing Director of H.I.G. “It has been a pleasure to partner with them in building a national integrated care model for surgical procedures. Together, we have developed a unique delivery model for surgical care and related services that prioritizes clinical excellence, while delivering cost efficient outcomes in a physician and patient friendly environment. We are excited to have the opportunity to support our new partners at Symbion. They share our values. We are eager to support their management team, employees, and physician partners as they continue to pursue their mission in healthcare.”
Bob Delaney, a Partner at Crestview Partners said, “We want to express our deep appreciation to Symbion’s management team and all the employees of the company for their hard work in delivering consistent growth over the course of our ownership. Symbion is an excellent company and we wish its new owners — Surgery Partners and H.I.G. — all the best going forward.”
Jefferies LLC acted as financial advisor to Surgery Partners and provided approximately $1.4 billion of committed debt financing for the transaction. McDermott Will & Emery LLP and Ropes and Gray LLP acted as legal advisors to H.I.G.
Morgan Stanley & Co. LLC acted as financial advisor and Waller Lansden Dortch & Davis, LLP acted as legal advisor to Symbion Holdings Corporation. Davis Polk & Wardwell LLP acted as legal advisor to Crestview Partners.
About Surgery Partners
Surgery Partners is a leading owner and operators of ASCs. The Company was founded in 2004 and since then has established a platform of 47 ASCs across 18 states, with surgical expertise in orthopedics, ophthalmology, pain management, gastrointestinal, ENT and general surgery. Surgery Partners additionally provides ancillary services to support its physician-partners and improve the quality and growth of its facilities.
Symbion owns and operates a national network of short stay surgical facilities. As of May 8, 2014, Symbion owned and operated 50 surgical facilities in 24 states. Their surgical facilities, which include ASCs and surgical hospitals, primarily provide non-emergency surgical procedures across many specialties, including, among others, cardiology, gastroenterology, ophthalmology, orthopedics and pain management. Symbion’s surgical hospitals also provide acute care services such as diagnostic imaging, laboratory, obstetrics, oncology, pharmacy, physical therapy and wound care.
About H.I.G. Capital
H.I.G. is a leading global private equity investment firm with more than $15 billion of equity capital under management. Based in Miami, and with offices in Atlanta, Boston, Chicago, Dallas, New York and San Francisco in the U.S., as well as international affiliate offices in London, Hamburg, Madrid, Milan, Paris and Rio de Janeiro, H.I.G. specializes in providing capital to small and medium-sized companies with attractive growth potential. H.I.G. invests in management-led buyouts and recapitalizations of profitable and well managed manufacturing or service businesses. Since its founding in 1993, H.I.G. has invested in and managed more than 200 companies worldwide. The firm’s current portfolio includes more than 80 companies with combined sales in excess of $30 billion. For more information, please refer to the H.I.G. website at www.higcapital.com.
About Crestview Partners
Founded in 2004, Crestview Partners is a value-oriented private equity firm focused on the middle market. The firm is based in New York and has approximately $6 billion of assets under management. The firm is led by a group of partners who have complementary experience and distinguished backgrounds in private equity, finance, operations and management. Crestview has senior investment professionals focused on sourcing and managing investments in each of the media, energy, financial services and healthcare industries.Get your FREE trial or subscribe now to Buyouts to find new deal opportunities, super-charge your fundraising efforts and track top managers.