Here are five things to know:
1. Covenant acquires and owns ASCs and physician practices. Currently, Covenant owns 37 gastrointestinal and ophthalmic ASCs and practices in 17 states.
2. DFW Capital Partners, Iroquois Capital Group, PineBridge Investments and other shareholders are selling Covenant to KKR for an undisclosed amount.
3. Covenant’s CEO Lew Little described the transaction as the “next stage of Covenant’s evolution.” He has worked with KKR in the past and is excited about the partnership and resources KKR will provide the company.
4. The transaction is still subject to regulatory approvals and customary closing conditions, but is expected to close during the third quarter. Piper Jaffray & Co. acted as Covenant’s financial advisor and Ice Miller LLP was the company’s legal advisor.
Simpson Thacher & Bartlett was KKR’s legal counsel.
5. KKR is primarily making the investment through its KKR Americas XII Fund. Goldman Sachs and KKR Capital Markets are providing fully committed debt financing for the transaction.
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