AmSurg, Envision Healthcare finalize $10B merger: 8 things to know

AmSurg and Envision Healthcare Holdings signed a definitive merger agreement, with the combined company having a pro forma market cap of nearly $10 billion.

Here are eight things to know:

1. The combined entity, Envision Healthcare Corporation, will have an enterprise value of approximately $15 billion, based on Envision and AmSurg's closing price on June 14. The new company will have headquarters in Nashville, Tenn., and Greenwood Village, Colo.

2. Per the merger agreement, Envision shareholders will hold a nearly 53 percent stake in the company, with AmSurg shareholders having a 47 percent stake.

3. Both companies' board of directors unanimously approved the deal, which is projected to be tax-free for both companies' shareholders. AmSurg and Envision project the transaction to be accretive to the two companies' combined adjusted earnings per share in 2017 and double-digit accretive in 2018.

4. For the first quarter of 2016, AmSurg and Envision had combined revenue surpassing $8.5 billion, and adjusted EBITDA of more than $1.1 billion.

5. Following the deal's transaction:
•    Envision's President, CEO and Chairman of the Board William A. Sanger will serve as the new company's executive board chairman.
•    Christopher A. Holden will maintain his AmSurg position as president and CEO of the combined company.
•    AmSurg's CFO Claire Gulmi will also maintain that role at the new company.
•    Randy Owen, Envision's CFO and COO, will be president of the new company.
•    Robert Coward, president of Sheridan and chief development officer at AmSurg, will serve as the new company's president of physician services.

6. Fourteen directors will form the company's new board — with seven members joining from Envision and the remaining seven joining from AmSurg's team.

7. AmSurg and Envision project the merger to result in $100 million in synergies after three years of closing.

8. As of March 31, 2015, AmSurg owned and operated 256 ASCs and one surgical hospital in 34 states and the District of Columbia.

"This merger will create a national platform with a highly differentiated suite of solutions. It will significantly increase our ability to empower physicians and expand our client relationships," Mr. Holden said. "Within a highly fragmented marketplace, we will have the critical first mover advantage to capitalize on the greenfield and cross-selling opportunities across our various offerings, and generate significant value for our shareholders."

More articles on surgery centers
5 things to know about selling and leasing back your ASC
Outpatient vs. inpatient orthopedic procedures: Where are the cost-savings?
6 factors dictating investment and M&A activity in the ASC sector

© Copyright ASC COMMUNICATIONS 2021. Interested in LINKING to or REPRINTING this content? View our policies by clicking here.


Featured Webinars

Featured Whitepapers