Bain Capital Private Equity has submitted a proposal to acquire the remaining 61% of shares in Surgery Partners that it does not already own, at $25.75 per share, giving the surgical facility operator a value of $3.2bn, according to a report by Reuters.
The report cites a regulatory filing on Tuesday as revealing Bain’s offer to take the business private with Surgery Partners’s share subsequently jumping by over 20% after news of the potential deal broke.
Surgery Partners has stated that a special committee of independent directors will now assess the proposal with the guidance of independent financial and legal advisors.
The offer represents a 21.2% premium over Surgery Partners’ last closing price. However, analysts believe this bid may not be enough. Bill Sutherland, an analyst at Benchmark, suggested that the premium might attract competing offers, given that several strategic and financial buyers have previously expressed interest in acquiring the company.
Bloomberg News recently reported that TPG and UnitedHealth were among the firms considering a takeover of Surgery Partners. Additionally, other private equity firms and strategic buyers have been exploring potential deals.
Bain Capital’s proposal follows Surgery Partners’s recent exploration of strategic alternatives, which ultimately did not lead to a transaction. In a letter dated Monday, Bain emphasised that its offer is in the best interests of the company and its shareholders.
“We have reflected on these events and current investor sentiment and have concluded that our proposal is in the best interests of the company and its stockholders,” Bain stated.
The firm also clarified that it is only interested in acquiring the remaining shares and has no intention of selling its current holdings.