AmSurg to Buy Sheridan Healthcare for $2.35B: 5 Things to Know

AmSurg plans to acquire Sheridan Healthcare in an approximately $2.35 billion transaction, according to a Bloomberg report. Here are five things to know about AmSurg, Sheridan Healthcare and the pending transaction.

1. The $2.35 billion deal will be a cash and stock transaction. Both the AmSurg and Sheridan boards have agreed to the deal. Sheridan investors will be issued roughly $615 million in AmSurg shares. AmSurg is receiving financial advisement from Citigroup and legal counsel from Bass, Berry & Sims. Sheridan is receiving financial advisement from Barclays, Credit Suisse and Goldman Sachs. Simpson, Thacher & Bartlett are spearheading Sheridan's legal counsel. The transaction is expected to close in the third quarter of 2014.

2. AmSurg, based in Nashville, Tenn., owns and operates 242 ambulatory surgery centers. The company reported $263.1 million in first quarter revenue, a 2 percent bump from $258.2 million in the first quarter of 2013. AmSurg shares have risen 19 percent in the past year, according to the Bloomberg report. The company has a market value of $1.39 billion. "With the addition of Sheridan, we will be significantly diversified and differentiated — holding leadership positions in outsourced physician services for anesthesia, children's services, emergency medicine services and radiology," said AmSurg CEO Christopher Holden in a statement.

3. Private equity firm Hellman & Friedman owns Sheridan Healthcare, based in Sunrise, Fla. Post-transaction, Hellman & Friedman will remain as shareholders. Sheridan provides physician services in anesthesiology, emergency medicine, neonatology and radiology for hospitals and medical facilities. Sheridan offers services in 25 states and employs more than 2,400 physicians and healthcare providers.

4. The anesthesia mergers and acquisitions market has been alive with activity over the past several months. Sheridan Healthcare, amongst other key players such as MEDNAX, TeamHealth and North American Partners in Anesthesia, has been actively acquiring smaller anesthesia groups. "As part of AmSurg, Sheridan will have enhanced relevance in its existing markets and expanded opportunities in important new markets in more states," said Sheridan CEO John Carlyle in a statement.

5. There has been much speculation over whether or not ASC companies will begin to employ surgeons and physicians. This transaction signifies a step in this direction. AmSurg, one of the largest industry companies, may set a precedent for the expansion of ASC company portfolios.

More Articles on Transactions and Valuation Issues:
If CMS Lowered HOPD Rates, What Could ASCs Expect?
5 Key ASC Companies Report Increased Q1 Earnings
Combining Forces: Are ASC Mergers the Answer to the Challenging Healthcare Environment?

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