Blackstone to Acquire Team Health for About $3.2 Billion
October 31 2016 - 9:50AM
Dow Jones News
Team Health Holdings Inc. said Monday the company has reached a
deal to sell itself to a group of investors led by private-equity
firm Blackstone Group LP for about $3.2 billion.
The deal to take Team Health private values it at $43.50 a
share, which is a 33% premium to the stock's closing price on Oct.
3, before The Wall Street Journal reported that negotiations were
under way. Shares of Team Health jumped 15% to $42.40 in premarket
trading.
The companies valued the deal at $6.1 billion; announced deal
values often include debt or other factors. Team Health had $2.4
billion in debt earlier this month, according to S&P Global
Market Intelligence.
The deal requires the approval of stockholders and regulatory
authorities. The transaction includes a 40-day "go-shop" period,
during which Team Health can seek other offers.
Team Health, based in Knoxville, Tenn., offers outsourced
health-care services, such as emergency care, hospital medicine and
anesthesiology, according to its website.
Last year, AmSurg Corp. made an unsolicited approach to combine
with Team Health but withdrew its offer after Team Health said it
was too low. At the time, the cash-and-stock offer valued Team
Health at around $5 billion.
Consolidation waves have swept through the hospital and
health-insurance industries, as part of a broader surge in
deal-making in the health-care and other sectors of the economy in
recent years.
Health-care services has been a particularly busy area. In
August, patient-survey company Press Ganey Holdings Inc. agreed to
sell itself to Swedish private-equity firm EQT for $2.4 billion. In
June, health-care giant McKesson Corp. said it would combine most
of its technology segment with the bulk of Change Healthcare
Holdings Inc., which is majority owned by Blackstone.
Team Health has been privately held previously. It was owned by
various private-equity firms for a decade, including Blackstone,
which bought the company for $1 billion in 2005 from a group of
investors and then took it public in 2009.
Write to Ezequiel Minaya at ezequiel.minaya@wsj.com
(END) Dow Jones Newswires
October 31, 2016 09:35 ET (13:35 GMT)
Copyright (c) 2016 Dow Jones & Company, Inc.
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