Team Health Exploring a Possible Sale
October 04 2016 - 5:20PM
Dow Jones News
Team Health Holdings Inc. is exploring a sale to a
private-equity firm, according to people familiar with the matter,
a year after the health-care-services firm rejected a takeover
offer from a rival.
Team Health, which had a market value of $2.4 billion on Tuesday
afternoon, is in talks with Blackstone Group LP and Bain Capital
and could reach a deal to go private this month, some of the people
said. As always, the talks could fall apart before a deal is
reached.
Team Health, based in Knoxville, Tenn., offers outsourced
health-care services, such as emergency care, hospital medicine and
anesthesiology, according to its website.
The company has $2.4 billion in debt, putting its so-called
enterprise value at around $4.8 billion, according to S&P
Global Market Intelligence.
Last year, AmSurg Corp. made an unsolicited approach to combine
with Team Health but withdrew its offer after Team Health said it
was too low. At the time, the cash-and-stock offer valued Team
Health at around $5 billion.
In June, AmSurg instead signed a deal to merge with Envision
Healthcare Holdings Inc.
Earlier this year, activist investor Jana Partners took an 8%
stake in Team Health, saying the company had "made missteps in
critical areas including capital allocation, strategy and
governance" and "would benefit from the addition of new directors
with the necessary expertise, experience and focus on shareholder
value."
In a rare move for the activist, Jana said it was nominating
directors on the day it disclosed its stake, as opposed to engaging
in discussions with the company before making such a move. In
March, Team Health settled with Jana, agreeing to add three
directors to its board.
Activists Sachem Head Capital Management LP and Corvex
Management LP are also top-10 shareholders in Team Health.
Consolidation waves have swept through the hospital and
health-insurance industries, as part of a broader surge in
deal-making in the health-care and other sectors of the economy in
recent years.
Health-care services has been a particularly busy area. In
August, patient-survey company Press Ganey Holdings Inc. agreed to
sell itself to Swedish private-equity firm EQT for $2.4 billion. In
June, health-care giant McKesson Corp. said it would combine most
of its technology segment with the bulk of Change Healthcare
Holdings Inc.
Write to Dana Mattioli at dana.mattioli@wsj.com, David Benoit at
david.benoit@wsj.com and Matt Jarzemsky at
matthew.jarzemsky@wsj.com
(END) Dow Jones Newswires
October 04, 2016 17:05 ET (21:05 GMT)
Copyright (c) 2016 Dow Jones & Company, Inc.
PRESS GANEY HOLDINGS, INC. (NYSE:PGND)
Historical Stock Chart
From Jan 2025 to Feb 2025
PRESS GANEY HOLDINGS, INC. (NYSE:PGND)
Historical Stock Chart
From Feb 2024 to Feb 2025