Private equity firm KKR & Co. will buy Envision Healthcare Corp. for $5.57 billion plus debt, after a lengthy sale process by the hospital staffing and surgical center company.
Including debt, the all-cash purchase will value Envision at $9.9 billion, the health care company said in a statement Monday. Envision said the $46-a-share price represents a 32% premium to its stock price in November, when it announced it was reviewing strategic alternatives.
The review kicked off for the Nashville, Tennessee-based company after activist investor Starboard Value, run by Jeff Smith, revealed a stake and said it would make an attractive takeover target. Corvex Management, another activist firm and shareholder, reduced most of its holdings in the first quarter.
In the months after the review started, the physician-services provider was said to draw a parade of interested parties looking at all or part of the company. They included strategic buyers such as UnitedHealth Group Inc., as well as private-equity consortiums comprised of Hellman & Friedman, Onex Corp. and Clayton Dubilier & Rice, and one led by Carlyle Group LP.
KKR is already familiar with Envision. The asset firm’s portfolio company, Air Medical, acquired Envision’s medical transport subsidiary American Medical Response in a $2.4 billion deal announced last year.