Bon Secours affiliate agrees to buy Surgery Partners for $5.7 billion
An affiliate of Bon Secours Mercy Health agreed Monday to take Surgery Partners private in a deal worth about $5.7 billion with debt, Reuters reported. Shareholders other than Bain Capital will get $23.50 a share in cash. The shares jumped more than 46 percent, set for their best day in over six years.
Surgery Partners said Monday it will be taken private by HealthSpan Partners, an affiliate of the nonprofit hospital system Bon Secours Mercy Health. The all-cash deal is worth about $5.7 billion including debt, Reuters reported. Shareholders other than Bain Capital will get $23.50 a share. That is about 49 percent above Friday's close, the companies said.
Bain Capital owns about 39 percent of Surgery Partners. It will roll its stake into the buyer and stay on as a partner, the companies said. Bain has agreed to vote its shares for the deal. HealthSpan plans to pay with cash and new debt.
Surgery Partners shares jumped more than 46 percent in morning trade, Stocktwits reported. That put them on track for their best day since April 2020.
The deal is expected to close in the first quarter of 2027. It still needs a vote by shareholders and approval from regulators. After it closes, the stock will leave Nasdaq. The company will keep its name, brand and headquarters in Brentwood, Tennessee, the companies said. They also said it will stay a secular group and will not be run as a Catholic ministry.
Surgery Partners runs more than 200 sites in 30 states, with about 5,000 doctors. The deal would push Bon Secours well past its 45-plus hospitals, Reuters said. A Mizuho analyst said the two overlap in Ohio and Kentucky. She did not expect big antitrust trouble.
The Financial Times first reported the talks over the weekend. It had put the deal at about $6 billion, or about $20 a share. Reuters said the deal ends a two-year review. During that review, Surgery Partners turned down a bid by Bain to take it private last year. Hospital groups have been buying surgery firms. Ascension bought AmSurg for $3.9 billion earlier this year.
This update follows an earlier NewsHabit card on the Financial Times report of the talks.
What we know: The deal is signed at $23.50 a share, Bain is rolling over its stake, and the close is set for early 2027.
What we don't: Whether regulators will raise concerns, and how the deal will change care at Surgery Partners sites.
Where outlets agree Reuters and Stocktwits both report a roughly $5.7 billion take-private deal at $23.50 a share, set to close in the first quarter of 2027.
Where they differ The cited reports agree on the key facts so far.