Blackstone to acquire TeamHealth Holdings for $6.1 billion

News Hour:

TeamHealth Holdings Inc on Monday said private equity firm Blackstone Group LP would buy it for $6.1 billion, in a deal meant to help the U.S. hospital staffing company better cope with pricing pressure during a wave of consolidation.

TeamHealth has been the target of activist investor Jana Partners LLC since February, when the hedge fund disclosed an 8 percent stake in the company. Jana has agreed to vote in favor of the Blackstone transaction, TeamHealth said, reports Reuters.

Blackstone’s purchase price of $43.50 per share is a 33 percent premium to TeamHealth’s closing stock price on Oct. 3, the last trading day before reports surfaced that the companies were in talks.



TeamHealth was trading at $42.80 on Monday, up 16.3 percent from Friday’s close, while Blackstone dipped 0.5 percent to $25.38.

The deal, to close in the first quarter of 2017, comes less than two months after TeamHealth named industry veteran Leif Murphy as chief executive officer, replacing retiring Michael Snow.

The U.S. physician services industry has been rapidly consolidating to counter rising administrative costs from President Barack Obama’s Affordable Care Act and the desire to offer a broader array of services to hospitals.

Rival Amsurg Corp, whose $5 billion bid for TeamHealth was snubbed last year, agreed in June to merge with Envision Healthcare Holdings Inc.

Following its rejection of Amsurg’s offer, TeamHealth in November acquired smaller peer IPC Healthcare Inc for $1.6 billion.

TeamHealth, which offers outsourcing services, including emergency medicine, anesthesiology and ambulatory care, to hospitals and physician groups, had outstanding debt of $2.47 billion as of June 30.

Reuters earlier this month reported Blackstone was the lead bidder for the Knoxville, Tennessee-based company, citing sources.

TeamHealth agreed in March to add three directors to its board following a deal with Jana, which had criticized its “missteps in critical areas including capital allocation, strategy and governance.”

Murphy most recently was executive vice president of LifePoint Health Inc, which owns and operates U.S. hospitals, physician practices and outpatient centers.

Goldman Sachs is the lead financial adviser and Citi the co-financial adviser to TeamHealth, while Simpson Thacher & Bartlett is the legal counsel.

BofA Merrill Lynch is Blackstone’s financial adviser, while Kirkland & Ellis LLP and Ropes & Gray LLP are its legal counsel.


This article has been posted by a News Hour Correspondent. For queries, please contact through [email protected]
No Comments

Translate this News

Join the Facebook Group

Click here to join the Facebook group of News Hour

Popular Posts

Trump invokes defense powers to order GM to produce ventilators
Retail Franchise Brands: the context of 2020
How man can test sperm quality using smartphone?
Eiza Gonzalez accidentally show Josh Duhamel Naked video on Instagram
Djokovic donates 1 million euros to help Serbia combat coronavirus
Assessment of govt policy changes in budget required for sustainable revenue collection


News of the Month

October 2016
« Sep   Nov »
Scroll Up
%d bloggers like this: