Investment firm Kohlberg Kravis Roberts closes $2.4 billion deal with Envision Healthcare, acquires Covenant Surgical Partners
Envision and WebMD deals are valued at more than $2 billion each; financial terms of Covenant deal were not disclosed.
Photo courtesy Flickr
Global investment firm Kohlberg Kravis Roberts & Co has announced they will buy Covenant Surgical Partners. Financial details were not disclosed.
Covenant buys and operates ambulatory surgery centers and physician practices, and touts 37 facilities located across 17 states.
The deal is expected to close in the third quarter of FY 2017.
[Also: Two Missouri hospitals eye merger as means to be a state-level competitor for specialized care]
The announcement comes just a day after another major, much-anticipated deal was unveiled. KKR's Air Medical Group Holdings will merge with Envision Healthcare's transportation subsidiary American Medical Response to form an entirely new medical transportation company, a transaction worth $2.4 billion, KKR said.
The combined company is expected to transport more than five million patients per year with air and ground ambulances across 46 states and the District of Columbia, KKR said in a statement.
Envision's President of Ambulatory Services Randall Owen will step in as President and CEO of the new company, and when the deal is done, a new company name will be designated.
[Also: Hospital execs: Beware unexpected costs in merger deals, Deloitte/HFMA report says]
That deal is scheduled to close in the fourth quarter of 2017.
Envision Healthcare owns and operates 263 surgery centers and one surgical hospital in 35 states and the District of Columbia, with medical specialties ranging from gastroenterology to ophthalmology and orthopedics.
[Also: Hospital merger and acquisition activity spikes by 15% in second quarter, Kaufman Hall report says]
"The Envision leadership team conducted a robust process to review strategic alternatives for AMR. The agreement delivers on our commitment to continue the proud tradition of AMR and enables Envision to focus on its physician-centric strategy and ongoing services, including facility-based provider services, post-acute care and ambulatory surgery," said Christopher A. Holden, Envision's President and Chief Executive Officer.
A little more than a week ago, KKR also revealed their deal for their company Internet Brands to buy WebMD in a transaction valued at approximately $2.8 billion. This acquisition is also expected to close in the fourth quarter of 2017.
Twitter: @BethJSanborn
