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.
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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.