TeamHealth Holdings Inc(NYSE:TMH), a leading physician services company which offers outsourced health-care services, announced on Monday that it had reached an agreement to be bought by a group of investors led by Blackstone Group LP (NYSE:BX).
The deal was valued at $6.1 billion including debt and other factors, and TeamHealth had debt of $2.4 billion in early October. Blackstone and other investors will buy all of the outstanding common shares of TeamHealth for $43.5 per share in cash, which is a premium of around 33% over TeamHealth's closing price at the last trading day before TeamHealth posted the new that it considered a possible sale of the company. After the announcement, shares of TeamHealth increased 15% to $42.45 per share in premarket trading Monday.
“We are pleased to reach this agreement with Blackstone, which maximizes value for all TeamHealth stockholders,” Leif Murphy, President and CEO of TeamHealth, said in the announcement. “Blackstone is focused on working closely with TeamHealth to achieve our strategic objectives and drive innovation and operational excellence in the context of the evolving U.S. healthcare marketplace.”
In the transaction, Goldman Sachs works as lead financial adviser and Citi is the co-financial adviser for TeamHealth. BofA Merrill Lynch is financial adviser for Blackstone. Simpson Thacher & Bartlett is the legal counsel of TeamHealth and Kirkland & Ellis LLP and Ropes & Gray LLP works as Blackstone’s legal counsel.
The transaction is expected to close in the first quarter of 2017 after getting approval from stockholder and regulator. After the completion of the deal, TeamHealth will be a privately held company, and will no longer be traded on NYSE.
“We are thrilled to have the opportunity to invest in TeamHealth and once again partner with such an experienced management team and high-quality business,” Neil P. Simpkins, a Blackstone’s senior managing director, said. “We look forward to supporting TeamHealth during the next phase of its development.”