Surgery Partners Inc. (Nasdaq: SGRY) will remain an independent company – for now.
On June 17, the Brentwood, Tennessee-based Surgery Partners announced that the special committee of independent directors that its board tasked with reviewing a go-private takeover bid from Bain Capital Private Equity has officially passed on the proposal.
As a result, Surgery Partners has “concluded discussions related to Bain Capital’s non-binding proposal to acquire all the outstanding shares of Surgery Partners not already owned by Bain Capital.”
“Surgery Partners offers a unique, scaled platform in the high-growth outpatient surgical care market that leverages its proven joint venture model, strong M&A track record, and favorable demographic and policy tailwinds,” Brent Turner, chairman of the independent committee, said in a statement. “Following review of the Proposal and discussions with Bain Capital, the Independent Committee concluded that the best path forward for Surgery Partners and its stockholders is to continue operating as an independent publicly traded company.”
The board remains confident in the management team’s ability to continue delivering sustained growth and “significant stockholder returns,” Turner added.
In the same announcement, Surgery Partners also reaffirmed its 2025 financial outlook. The company forecasts revenues and adjusted EBITDA to be in the range of $3.3 billion to $3.45 billion, and $555 million to $565 million, respectively.
“Our strong first quarter performance gives us even more confidence in our ability to achieve our full-year 2025 revenue and adjusted EBITDA guidance, reinforcing that Surgery Partners is well positioned to deliver results that support our long-term growth algorithm,” CEO Eric Evans said. “Given favorable surgical trends and our bullish outlook on the regulatory landscape, we continue to be excited by Surgery Partners’ unique competitive positioning and growth potential.”
Evans emphasized that Surgery Partners expects to maintain a positive relationship with Bain Capital, which is currently one of the company’s largest investors.
While its proposal ultimately wasn’t accepted, Bain likewise maintains a bullish view of Surgery Partners.
“While we were not able to agree to terms of a transaction, we remain tremendously optimistic about the business, leadership team and growth strategy of Surgery Partners,” Bain Capital Partners Andrew Kaplan and Devin O’Reilly said in a joint statement. “We look forward to continuing to work with Surgery Partners as long-term investors and collaborators.”
This is a developing story. Please check back later for additional updates.
