Private equity firm buys Emergency Medical Services for $3.2 billion
Ambulance operator and physician services company Emergency Medical Services is being acquired by private equity firm Clayton, Dubilier & Rice, LLC for $3.2 billion.
Under the terms of the deal, EMSC shareholders will receive $64 at closing for each share of Class A common stock, Class B common stock and each LP Exchangeable Unit.
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The EMSC Board of Directors unanimously approved the terms of the definitive merger agreement and has recommended that EMSC stockholders approve the transaction. The Onex Corp. and its affiliates, the holders of the company’s LP Exchangeable Units, have sufficient voting power to approve the merger and have agreed to vote in favor of the merger.
“Our partnership with Onex over the past six years has enabled us to build a world-class healthcare company. In the next stage of our evolution, EMSC’s agreement with CD&R and the transition to a privately-held company will greatly enhance our flexibility and growth opportunities in the future,” said William A. Sanger, EMSC's chairman and CEO. “With this transaction we are able to maximize stockholder return while – with our new global equity partner – further positioning EMSC to play a significant role in delivering quality, cost-effective care for our patients in the era of healthcare reform.”
EMSC provides emergency medical services in two industry segments. Its American Medical Response (AMR) unit is billed as the leading provider of ambulance services in the country, while EmCare Holdings is an outsourced physicians services operation that provides services to more than 2,200 communities and registers more than 14 million patient encounters each year.
“EMSC has demonstrated the ability to consistently provide superior patient care and service which is demonstrated by its long-term customer relationships,” said Kenneth A. Giuriceo, a partner with Clayton, Dubilier & Rice. “We look forward to working with the management team to enhance the company’s competitive advantages and build long-term value for its customers, employees and investors.”
The acquisition is expected to close in the second quarter this year, subject to regulatory approval and approval of EMSC shareholders. Once the transaction is completed, EMSC will become a private company and will cease trading on the New York Stock Exchange.
