Bain Capital to retain 40% stake in $6bn Surgery Partners take-private

Bain Capital is reportedly maintaining its 40% stake in Surgery Partners following an impending $6bn takeover by US healthcare operator Bon Secours Mercy Health, according to a Financial Times report. Bon Secours is in advanced talks to acquire a majority interest in Surgery Partners at a price of around $20 per share, pending an agreement that could be announced as early as Monday.

The transaction would value Surgery Partners at roughly $6bn, including its $3.5bn debt burden. Despite a previous failed attempt last year to purchase the company's remaining shares at an estimated $6.7bn including debt, Bain Capital has decided to retain its investment. Surgery Partners operates 176 surgical centers and hospitals across 30 US states, specializing in outpatient procedures and related healthcare services.

The acquisition would substantially augment Bon Secours' presence in the outpatient care sector, which is becoming increasingly attractive to healthcare operators seeking to diversify beyond traditional hospital services. This move aligns with recent consolidation trends in the US healthcare services market, as seen in Ascension's $3.9bn acquisition of surgical care provider Amsurg earlier this year.

Surgery Partners' shares have declined about 31% over the past year, resulting in an equity valuation of approximately $2.1bn prior to the reported offer. Bon Secours, operating 47 hospitals across the US and Ireland, generated around $14bn in revenue last year. The company has also been involved in private equity-backed deals, including its investment in Ensemble, a healthcare payments software company, which recently sold a majority stake to Thoreau Group for an $11.75bn valuation, with Bon Secours retaining a minority interest.