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AMN completes $160 million B.E. Smith deal

January 05, 2016

AMN Healthcare Services Inc. (NYSE: AHS), the largest US healthcare staffing firm, on Monday completed its acquisition of B.E. Smith, an executive search firm specializing in healthcare.

The $160 million, all-cash deal was announced in November and is being funded through a combination of term loan borrowings and revolver draws under the company’s credit facility.

B.E. Smith was founded in 1978 and provides senior-level leadership services including interim leadership, executive search and advisory services.

“The recruitment expertise and national talent pool of healthcare leaders provided by B.E. Smith brings immediate strategic value to AMN Healthcare’s broad portfolio of innovative workforce solutions,” said AMN Healthcare President and CEO Susan Salka. “Client reaction to our recent announcement has been very positive, particularly as healthcare organizations are faced with the need for key executive and leadership talent to drive transformation across the care continuum.”

According to a filing with the US Securities and Exchange Commission, AMN Healthcare completed the acquisition pursuant to the terms of a stock purchase agreement with Josem Holding Inc., a Kansas corporation and the sole owner and holding company of B.E. Smith Inc., and John D. Smith, the sole owner of all issued and outstanding shares of capital stock of the company. Upon completion of the acquisition, Josem became a wholly owned subsidiary AMN Healthcare, and Josem’s wholly owned subsidiaries — B.E. Smith Inc., B.E. Smith Interim Services Inc., and B.E. Smith International, Inc. — became indirect wholly owned subsidiaries.

The transaction is immediately accretive to AMN’s earnings and is structured to allow AMN to realize tax benefits with an estimated net present value of approximately $25 million.