H.I.G. Capital News
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H.I.G. Capital Announces the Sale of its Equity Stake in Surgery Partners
MIAMI – May 15, 2017 – H.I.G. Capital (“H.I.G.”), a leading global private equity investment firm with over $21 billion of equity capital under management is pleased to announce that it has entered into an agreement to sell its existing stake in Surgery Partners, Inc. (NASDAQ:SGRY) (“Surgery Partners” or the “Company”) to Bain Capital Private Equity, a leading global private investment firm. Per terms of the agreement, H.I.G. will sell its 26,455,651 common shares of Surgery Partners to BCPE Seminole Holdings LP, an affiliate of Bain Capital Private Equity, LP for a cash purchase price per share of $19.00, or cash consideration of approximately $503 million. H.I.G. also entered into an agreement with the Company to amend the Company's Tax Receivable Agreement in its capacity as the stockholder representative.
In conjunction with the transaction, Surgery Partners and National Surgical Healthcare (“NSH”), an owner and operator of surgical facilities in partnership with local physicians, have entered into a definitive merger agreement under which Surgery Partners will acquire NSH from Irving Place Capital for approximately $760 million. Funding for the transaction will be provided in part by Bain Capital Private Equity, who is injecting capital in exchange for preferred equity in the Company.
In December 2009, H.I.G. partnered with Surgery Partners CEO Mike Doyle to acquire Surgery Partners, which at the time operated a small portfolio of ambulatory surgery centers and physician practices in Florida. With the leadership of Mike Doyle and the Surgery Partners team and strategic guidance and capital support from H.I.G., the Company executed upon an aggressive growth plan, expanding its footprint across the country and enhancing its specialty mix and ancillary service offerings, through both organic growth and acquisitions, including the acquisitions of Symbion and NovaMed. In 2015, Surgery Partners completed an initial public offering on the NASDAQ exchange, with H.I.G. retaining a majority equity stake in the Company. The combined Surgery Partners and NSH company will operate 125 surgical facilities, 58 physician practice locations and complementary ancillary services in 32 states.
Mike Doyle, CEO of Surgery Partners, said, “We are thankful to have had the opportunity to grow the Company with H.I.G. Capital over the past seven years, and thank the entire H.I.G. team for their support of our Company and management team along the way.”
H.I.G. Capital Managing Director Matthew Lozow commented, “Surgery Partners is an exceptional company and we are grateful to Mike Doyle and the entire Surgery Partners organization for all their contributions in building this tremendous platform over the past several years. We are proud of what this team has accomplished during our partnership together and look forward to watching the Company’s continued success in the future.”
About Surgery Partners
Headquartered in Nashville, Tennessee, Surgery Partners is a leading healthcare services company with a differentiated outpatient delivery model focused on providing high quality, cost effective solutions for surgical and related ancillary care in support of both patients and physicians. Founded in 2004, Surgery Partners is one of the largest and fastest growing surgical services businesses in the country, with more than 150 locations in 29 states, including ambulatory surgical facilities, surgical hospitals, a diagnostic laboratory, multi-specialty physician practices and urgent care facilities. For information about Surgery Partners, visit the company’s website at www.surgerypartners.com.
About H.I.G. Capital
H.I.G. is a leading global private equity and alternative assets investment firm with over $21 billion of equity capital under management.* Based in Miami, and with offices in New York, Boston, Chicago, Dallas, Los Angeles, San Francisco, and Atlanta in the U.S., as well as international affiliate offices in London, Hamburg, Madrid, Milan, Paris, Bogotá, Mexico City and Rio de Janeiro, H.I.G. specializes in providing both debt and equity capital to small and mid-sized companies, utilizing a flexible and operationally focused/ value-added approach:
- H.I.G.’s equity funds invest in management buyouts, recapitalizations and corporate carve-outs of both profitable as well as underperforming manufacturing and service businesses.
- H.I.G.’s debt funds invest in senior, unitranche and junior debt financing to companies across the size spectrum, both on a primary (direct origination) basis, as well as in the secondary markets. H.I.G. is also a leading CLO manager, through its WhiteHorse family of vehicles, and manages a publicly traded BDC, WhiteHorse Finance.
- H.I.G.’s real estate funds invest in value-added properties, which can benefit from improved asset management practices.
Since its founding in 1993, H.I.G. has invested in and managed more than 200 companies worldwide. The firm's current portfolio includes more than 100 companies with combined sales in excess of $30 billion. For more information, please refer to the H.I.G. website at www.higcapital.com.
About National Surgical Healthcare
NSH is an innovative healthcare partner that empowers physicians to thrive in a changing marketplace. NSH owns and operates 21 surgical facilities, specializing in orthopedic surgery, spine and back, pain management, and neurosurgery. For information about NSH, visit the company’s website at www.nshinc.com.
About Bain Capital Private Equity
Bain Capital Private Equity (www.baincapitalprivateequity.com) has partnered closely with management teams to provide the strategic resources that build great companies and help them thrive since our founding in 1984. Our team of more than 220 investment professionals creates value for our portfolio companies through our global platform and depth of expertise in key vertical industries, including industrials, consumer/retail, financial and business services, healthcare, and technology, media and telecommunications. In addition to private equity, Bain Capital invests across asset classes including credit, public equity and venture capital, and leverages the firm’s shared platform to capture opportunities in strategic areas of focus.
* Based on total capital commitments managed by H.I.G. Capital and affiliates.