Surgery Partners pays $760M for National Surgical Healthcare: 5 things to know

Nashville, Tenn.-based Surgery Partners acquired surgical facilities owner and operator National Surgical Healthcare from Irving Place Capital.

Here are five things to know:

1. Surgery Partners purchased National Surgical Healthcare for around $760 million. Bain Capital Private Equity provided part of the funding for the transaction in exchange for preferred security in the company.

2. Bain Capital Private Equity plans to acquire H.I.G. Capital's existing equity stake in Surgery Partners in conjunction with the transaction.

3. Together, Surgery Partners and National Surgical Health have a portfolio of 125 surgical facilities and 58 physician practices along with complementary ancillary services. They will operate facilities in 32 states with a network of more than 5,000 physicians.

"This transaction strengthens our market position and will provide new opportunities to introduce ancillary services to our expanded network of surgical facilities," said Surgery Partners CEO Mike Doyle. "NSH and Surgery Partners share a commitment to high quality, cost effective healthcare services. We are optimistic that this combination will promote physician recruitment and new service line expansion while generating solid growth, and we expect this transaction to be accretive in 2018."

4. The combined company will have a strong presence in the musculoskeletal field, including orthopedics, pain and spine.

5. Both parties expect the transaction to close this year after receiving the required regulatory approvals. Jeffries LLC was the exclusive financial adviser for the transaction and Ropes & Gray LLP is serving as legal counsel. PwC is acting accounting advisor to Surgery Partners and Bain Capital Private Equity. Kirkland & Ellis is acting as counsel to Bain Capital Private Equity and J.P. Morgan Securities is the acting financial advisor to National Surgical Health, with Weil, Gotshal & Manges as the legal advisor.

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