Team Health Holdings Inc. (NYSE: TMH), a clinical outsourcing provider in healthcare, entered into a definitive agreement to be acquired by funds affiliated with global asset manager Blackstone and certain co-investors in a transaction valued at approximately $6.1 billion.
Team Health operates healthcare staffing firm D&Y among its other business operations, and last year rejected merger offers by AmSurg Corp.
Terms of the agreement call for Blackstone and its co-investors to acquire all of the outstanding shares of TeamHealth common stock for $43.50 per share in cash. This represents a premium of approximately 33% over TeamHealth's closing share price on Oct. 3, the last trading day prior to news reports that TeamHealth was considering a possible sale of the company.
“Blackstone is one of the world's leading investment firms and will be a tremendous capital partner to help accelerate TeamHealth’s growth priorities and fund our long-term initiatives as we continue to execute on our strategic priorities, ”said Lynn Massingale, MD, co-founder and executive chairman of TeamHealth. “As a prior owner of TeamHealth, Blackstone knows TeamHealth and the US healthcare industry well and will work with us to create value for all our stakeholders over the long-term. We are very proud of our team and believe this investment is a testament to the underlying strength of the organization and the thousands of skilled and dedicated clinicians who choose to be part of TeamHealth.”
The Wall Street Journal reports TeamHealth was privately held previously. It was owned by various private-equity firms for a decade, including Blackstone, which bought the company for $1 billion in 2005 from a group of investors and then took it public in 2009.
The transaction is expected to close in the first quarter of 2017, subject to stockholder approval, regulatory approvals and other customary closing conditions. Following completion of the transaction, TeamHealth will become a privately held company, wholly owned by funds affiliated with Blackstone, and will no longer be traded on the New York Stock Exchange.
TeamHealth’s board of directors unanimously approved the agreement.
