Brentwood, Tenn.-based Surgery Partners has rejected a proposal from private equity firm Bain Capital to acquire all outstanding shares not already owned by the firm, reaffirming its commitment to remain an independent, publicly traded company.
Following a review by its independent committee, the company concluded that the value and growth prospects of staying independent outweighed those offered in the proposal, according to a June 17 news release.
“Surgery Partners offers a unique, scaled platform in the high-growth outpatient surgical care market that leverages its proven joint venture model, strong M&A track record and favorable demographic and policy tailwinds,” Brent Turner, chairman of the independent committee, said in the release.
Bain Capital, a longtime investor in Surgery Partners, responded with a note of continued support for the company.
“While we were not able to agree to terms of a transaction, we remain tremendously optimistic about the business, leadership team and growth strategy of Surgery Partners. We look forward to continuing to work with Surgery Partners as long-term investors and collaborators,” Bain Capital Partners Andrew Kaplan and Devin O’Reilly said in the release.
Surgery Partners also reiterated its financial outlook for 2025, projecting revenues between $3.3 billion and $3.45 billion, with adjusted EBITDA expected in the range of $555 million to $565 million.
The decision to remain independent lands amid heightened industry scrutiny of private equity consolidation in healthcare. The historically fragmented ASC sector faces pressure from growing investor activity, which some warn could undermine competition and physician autonomy.
“This is a textbook example of how private equity firms are consolidating their hold over healthcare in general, and the outpatient surgery business in particular,” Shakeel Ahmed, MD, CEO of Atlas Surgical Group in St. Louis, told Becker’s about the potential deal last year. “This merger will again glaringly outline the negative impact that private equity has had over our business. Not only will this limit fair trade and good patient care, by prioritizing financial returns over quality care and fair competition, private equity would continue to negatively impact our business.”
Bain Capital has been involved with Surgery Partners for over eight years. After the company’s IPO in 2015, it merged with National Surgical Healthcare in 2017, and Bain later acquired HIG Capital’s stake in the organization.
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