Surgery Partners to be taken private by Bon Secours in $6B deal

Ann Hynes: Ann Hynes is a Mizuho analyst who commented on the Surgery Partners transaction. She noted limited market overlap in certain regions, minimal expected FTC antitrust concerns, and that Bain Capital's continued involvement should support deal completion. Bain Capital: Bain Capital is a private equity group that has been a minority shareholder in Surgery Partners since 2017. It is backing the take-private deal and will retain a major ownership stake in the company after closing. Surgery Partners: Surgery Partners operates outpatient surgery centers, short-stay hospitals, and related healthcare services across the United States. The company is being taken private by HealthSpan Partners, an affiliate of Bon Secours Mercy Health, in a transaction backed by its existing minority investor Bain Capital, which has held a stake since 2017. HealthSpan Partners: HealthSpan Partners is an affiliate of the nonprofit hospital system Bon Secours Mercy Health. It is leading the transaction to take Surgery Partners private, with the deal expected to broaden the parent system's presence in outpatient care. Bon Secours Mercy Health: Bon Secours Mercy Health is a nonprofit hospital system operating more than 45 hospitals. Its affiliate HealthSpan Partners is acquiring Surgery Partners to expand the system's national footprint into outpatient surgical services across additional states and physician networks. Market Trend: Healthcare operators are expanding into outpatient surgery services, as evidenced by recent acquisitions by not-for-profit health systems. Deal Background: The transaction concludes a multi-year strategic review process for Surgery Partners that attracted interest from multiple potential buyers. Regulatory Outlook: Analysts expect limited antitrust risk for the deal due to the geographic scope and Bain Capital's retained role facilitating a smooth closing process.