Amsurg Corp Announces Plans To Buy Sheridan Healthcare

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Amsurg Corp (NASDAQ:AMSG) said today that it will buy Sheridan Healthcare in a deal worth approximately $2.35 billion. The ambulatory surgery center operator announced today that the boards of both companies had already agreed to the deal. Amsurg said the buyout will start contributing to its adjusted earnings per share immediately, reports Bloomberg.

Amsurg announces deal with Sheridan

The deal includes both stock and cash, and Amsurg Corp (NASDAQ:AMSG) management said it will give the company “a leadership position” in numerous other areas of healthcare, including anesthesia, emergency medicine, radiology and children’s services. Currently private-equity firm Hellman & Friedman LLC owns Sheridan Healthcare.

CRT Capital Group analyst Sheryl Skolnick also said the acquisition will also enable it to compete with Team Health Holdings LLC (NYSE:TMH), as well as EmCare Inc. and maybe even hospitals. Deutsche Bank analyst Darren Lehrich told Bloomberg that the acquisition is a “significant departure” from Amsurg Corp (NASDAQ:AMSG)’s core business of running ambulatory surgery facilities.

Sheridan Healthcare to own part of Amsurg

According to today’s announcement, Hellman & Friedman will continue to be a “significant shareholder” of the company after Amsurg Corp (NASDAQ:AMSG) buys Sheridan Healthcare. The companies said current investors in Sheridan Healthcare will receive a total approximate value of $615 million worth of shares in the combined company. Amsurg said it might also use cash as a replacement for “a substantial portion” of the equity consideration.

Currently Sheridan Healthcare runs in 25 different states and has over 2,400 doctors and healthcare professionals. Sheridan CEO John Carlyle said on the conference call about the acquisition that it makes sense because anesthesia is an important part of surgery. “You can’t have one without the other,” Carlyle saild.

Management expects the acquisition to close in the third quarter of the year. Citigroup Inc (NYSE:C) advising Amsurg Corp (NASDAQ:AMSG) on the financial aspect of the transaction, while the law firm Bass, Berry & Sims Plc is advising the legal side of it. Goldman Sachs Group Inc. (NYSE:GS) and Credit Suisse Group AG (ADR) (NYSE:CS) are advising Sheridan Healthcare on the financial side, while the law firm Simpson Thacher & Bartlett LLP is providing the legal advice.

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