Return to search

American Securities’ SpecialtyCare seeks buyer

SpecialtyCare, the American Securities-backed provider of intraoperative neuromonitoring and other emergency-room services, is in the midst of a sales process, according to four sources.

Barclays is conducting the process, two sources said.

The Nashville company generates about $55 million in EBITDA, two sources said. The target ought to fetch a multiple of roughly 10 times, one of the people estimated, suggesting a valuation in the ballpark of $550 million.

SpecialtyCare could be either a private equity or strategic play, the sources said, citing TeamHealth Holdings and Envision Healthcare as logical buyers on the strategic end. Both public companies have proven to be prolific acquirers of outsourced physician services, alongside competitor Mednax.

AmSurg and Envision united in 2016 in an all-stock merger-of-equals transaction to create a physician-services behemoth — Envision Healthcare — with an initial enterprise value of around $15 billion. The deal came after the former abandoned its efforts to purchase TeamHealth after hiking the cash component of its $7.8 billion offer.

Founded in 2006, SpecialtyCare provides outsourced operating-room services including perfusion and intraoperative neuromonitoring, autotransfusion, sterile processing management, surgical assist and minimally invasive surgical support. The company is led by CEO Melvin Hall, former chief executive of healthcare performance technology company Press Ganey. Hall took the helm in 2014.

American Securities, New York, completed its majority investment in SpecialtyCare in May 2011. Terms weren’t disclosed. The American Securities investment team included Marc Saiontz, David Horing and Helen Chiang.

SpecialtyCare, for its part, has grown partly through M&A.

The company most recently scooped up perfusion-services company Trident Health Resources for an undisclosed sum. The February add-on expanded its services to more than 120,000 annual open-heart and perfusion-related procedures for 850 surgeons at more than 350 hospitals, a news release said.

Other purchases include an October transaction for intraoperative-monitoring company Sentient; its April 2015 acquisition of intraoperative neuromonitoring company ProNerve; and its June 2011 deal for Advanced Perfusion Care, a provider of cardiovascular perfusion and autotransfusion services. Terms of the deals were not disclosed.

Other providers of intraoperative neuromonitoring include Medsurant Monitoring, backed by New Capital Partners and Alcentra Capital Corp. Medsurant, West Conshohocken, Pennsylvania, concentrates on advanced brain and spine surgeries.

Recent deals in the arena include Housatonic Partners’ recap of Accurate Monitoring, a regional provider in New York and New Jersey that was advised by Capstone Partners on the deal.

Recent healthcare deals for American Securities include its take-private of Air Methods on April 21. The $2.5 billion deal for the nation’s largest operator of air medical emergency transportation followed pressure from activist hedge fund Voce Capital.

A representative of American Securities declined to comment. A Barclays official didn’t immediately return a request for comment.

Action Item: American Securities’ portfolio:

Photo courtesy Spotmatik/iStock/Getty Images