Surgery Partners, a portfolio company of H.I.G. Capital, has completed its previously announced acquisition of Crestview Partners’ portfolio company Symbion Holdings for $792 million.
Symbion, acquired by Crestview in April 2007, is an operator of 56 short-stay ambulatory surgery centers and surgical hospitals located in 24 states. The company is headquartered in Nashville (www.symbion.com).
Surgery Partners, a portfolio company of H.I.G. Capital since January 2010, is an owner and operator of ambulatory surgery centers. The company was founded in 2004 and has established a national platform of ASCs, with surgical expertise in orthopedics, ophthalmology, pain management, gastrointestinal, ENT and general surgery. Surgery Partners is headquartered in Chicago (www.surgery-partners.com).
According to H.I.G., the combination of Symbion and Surgery Partners creates the second largest independent ambulatory surgery center (ASC) operator in the US and will generate over $900 million in annual revenues. The combined company will operate facilities in 26 states and will provide clinical services from over 2,400 physicians to over 500,000 patients annually. In addition to surgical services, the businesses operate numerous outpatient ancillary lines of care, including anesthesia, diagnostic testing, radiation oncology, pharmacy, urgent care, and physician services.
“We look forward to building upon the momentum of Surgery Partners as it continues to transform the ASC industry,” said Chris Laitala, Managing Director of H.I.G. “We are excited to support the combined business, including our new partners at Symbion, in continuing to construct a best-in-class, cost-effective, national integrated care model for surgical specialists.”
As part of the transaction, Surgery Partners entered into a new $1.4 billion senior secured credit facility to finance the cash portion of the purchase price and to repay borrowings under Surgery Partners’ and Symbion’s existing credit facilities. Jefferies acted as financial advisor to Surgery Partners and provided committed debt financing for the transaction. Morgan Stanley & Co. acted as financial advisor to Symbion.
H.I.G. Capital specializes in providing capital to small and medium-sized companies and invests in management-led buyouts and recapitalizations of manufacturing or service businesses. H.I.G. Capital has more than $17 billion of capital under management. The firm was founded in 1993 and is based in Miami with additional offices in Atlanta, Boston, Chicago, Dallas, New York, San Francisco, London, Hamburg, Madrid, Milan, Paris, and Rio de Janeiro (www.higcapital.com).
Crestview Partners invests from $100 million to $250 million in companies with enterprise values up to $3 billion. Sectors of specific interest include media, financial services, healthcare and energy. The firm will invest in other industries where its relationship network and senior operating capabilities provide an advantage. The firm was founded in 2004 and is based in New York (www.crestview.com).
2014 PEPD • Private Equity’s Leading News Magazine • 11-4-14
