Surgery Partners (Nasdaq: SGRY) has been exploring a possible sale since at least July, according to multiple news reports. Now, the surgical services giant appears to have a proposal on the table.
On Monday evening, Bain Capital Private Equity reached out to the Surgery Partners board with a non-binding proposal to acquire all of the company’s stock it does not already own for $25.75 per share. The proposal was documented via public financial filings with the U.S. Securities and Exchange Commission (SEC).
With this latest development, Surgery Partners saw its stock value jump 20% in pre-market trading on Tuesday.
This initial proposal does not come with any specific structure for the transaction, and Surgery Partners has not yet delivered any feedback on it. The proposal also does not obligate the respective parties to negotiate or enter into definitive transaction documentation with respect to a transaction.
The bid represents a roughly 21% premium to Surgery Partners’ Monday closing price.
Bain Capital has a sizable stake in Surgery Partners. Monday’s development came after Surgery Partners evaluated strategic alternatives but did not land on a transaction, something that Bain believes is in the best interest of the company and shareholders, according to reporting from Reuters.
“We have reflected on these events and current investor sentiment and have concluded that our proposal is in the best interests of the company and its stockholders,” Bain Capital said in a Monday letter.
TPG Inc. (Nasdaq: TPG) and UnitedHealth Group (NYSE: UNH) were previously identified as possible Surgery Partners buyers.
Surgery Partners operates hundreds of ambulatory surgery centers (ASCs) across nearly three dozen states. The company has itself been an active acquirer, having deployed nearly $280 million on strategic acquisitions during the first half of 2024 alone.
It has likewise maintained a robust de novo pipeline.
“We remain optimistic about our de novo process and pipeline and look forward to providing additional detail as these become meaningful additions to our portfolio,” Surgery Partners CEO Eric Evans said during the company’s Q2 2024 earnings call.
