Surgery Partners, preparing for summer IPO, hires banks — Reuters

(Reuters) – Surgery Partners LLC is preparing for an initial public offering (IPO) in the summer that could value the private equity-owned surgical center manager at about $2 billion, including debt, according to people familiar with the matter.

Surgery Partners, owned by H.I.G Capital LLC, is working with investment banks includingBank of America Corp (BAC.N), Citigroup Inc (C.N) and Jefferies LLC on the potential IPO, the people said this week.

The sources asked not to be identified because the deliberations are private. Surgery Partners, H.I.G. Capital, Citigroup and Jefferies could not be reached immediately for comment. Bank of America declined to comment.

The Nashville, Tennessee-based firm owns and operates ambulatory surgery centers that provide same-day outpatient care.

Patients can receive services including anesthesia, diagnostic testing and radiation oncology, increasingly visit these centers, as they tend to cost less and are more convenient than traditional hospitals.

H.I.G. Capital bought Surgery Partners in 2010 for an undisclosed amount. It later bought surgery center operator NovaMed for $214 million and merged the businesses.

Last November, Surgery Partners acquired Symbion Holdings Corp, owned by Crestview Partners, for $792 million.
The combined company operates facilities in 29 states and serve over 500,000 patients annually.

Surgery Partners’ competitors include Surgical Care Affiliates Inc (SCAI.O), AmSurg Corp (AMSG.O) and United Surgical Partners International, which struck a merger deal with Tenet Healthcare Corp (THC.N) this week.