HCA aims to acquire AmSurg, partners with KKR in bid for Envision's physician services: 5 things to know

HCA Healthcare and KKR partnered to make Envision an offer to buy out the company's physician services unit, including AmSurg, according to a Reuters report.

Here are five things to know.

1. HCA and KKR made the offer on Friday to compete with private equity firms Carlyle Group and TPG Global for the deal. According to the report, Envision is seeking final offers later in May.

2. In its first quarter earnings report, Envision's board of directors noted it was exploring ways to increase value for shareholders, including a future sale of the company. UnitedHealthcare had reportedly expressed interest, but withdrew the offer after the two companies traded lawsuits.

3. In 2017, Envision sold its ambulance unit to a KKR-owned business for $2.4 billion. If Envision accepts the offer from HCA and KKR for physician services, HCA plans to acquire AmSurg while KKR would take over the remainder of the line.

4. Envision has a $5.1 billion market capitalization and $4.6 billion long term debt. By comparison, HCA has a $36 billion market capitalization and $31.6 billion long term debt.

5. After the offer was reported, Envision shares jumped 7.8 percent, according to Seeking Alpha. In 2017, the physician services unit accounted for 16 percent of Envision's total revenue.


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