Global investment firm KKR will pay $5.5 billion to acquire Nashville-based Envision Healthcare, the firm revealed today. The all-cash deal to take the public company private is one of the biggest private equity purchases in recent years.
Envision provides physician services, offering staffing through a network of 25,000 clinical professionals at thousands of hospitals, surgery centers and other care sites across the country.
It focuses primarily in the areas of the emergency department, hospitalist services, anesthesiology, radiology and teleradiology and children's services at more than 1,800 clinical departments in healthcare facilities in 45 states and the District of Columbia
Envision will become a private company, and its common stock will no longer be traded on the New York Stock Exchange.
Back in 2016, Colorado-based Envision Healthcare Holdings and AmSurg, headquartered in Nashville, merged to create a new company, which at the time was worth $10 billion.
This year after conducting a robust review of the business and competitive landscape, the company's opportunities and challenges, and the strategic and financial alternatives available to the company, "the board unanimously believes that this transaction will deliver the most value to Envision's shareholders," said James D. Shelton, Envision's lead independent director.
"Envision's leadership team – including both the board and management – have been singularly focused on driving value for our shareholders and have taken decisive action in furtherance of that goal, including the implementation of a comprehensive operational improvement plan and a robust review of strategic alternatives," added Christopher A. Holden, Envision's president, CEO and director.
Jim Momtazee, head of KKR's healthcare investment team, noted that Envision has a strong reputation for delivering high-quality, patient-focused care across the country. "We are excited to partner with the outstanding team led by Chris Holden to help build upon the strong foundation in place and accelerate Envision's growth going forward," he said.
Completion of the transaction is planned for the fourth quarter of 2018, subject to customary closing conditions and regulatory approvals.
Envision intends to present the proposed transaction to its shareholders for approval at the company's 2018 annual meeting, which has not yet been scheduled. KKR expects to hold the meeting no later than Oct. 1, 2028.
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