Surgery Partners Stock Soars 46% on $5.7 Billion Take-Private Agreement

Shares of Surgery Partners (SGRY) soared in morning trading on Monday after the surgical center operator announced it had entered into a definitive agreement to be taken private by HealthSpan Partners, an affiliate of the non-profit health system Bon Secours Mercy Health. The all-cash transaction values the company at an enterprise value of approximately $5.7 billion.

The Acquisition Terms

Under the terms of the agreement, Surgery Partners shareholders, excluding affiliates of Bain Capital, will receive $23.50 per share in cash. This price represents a significant premium of approximately 49% over the stock's previous closing price of $15.75.

In response to the news, the company's stock jumped as much as 46.3%, with the price reaching $23.05 per share, trading just below the offer price and approaching its 52-week high. As is common in such transactions, an investor rights law firm has announced an investigation into whether the deal adequately compensates shareholders.

Bain Capital's Continued Involvement

A key component of the deal is the role of Bain Capital, Surgery Partners' largest shareholder. The private equity firm, which holds an approximate 39% stake in the company, has agreed to roll over its equity into the newly formed private entity rather than cashing out.

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This move signals Bain Capital's continued confidence in the business and its long-term strategy. It follows a previously reported, but unsuccessful, attempt by Bain to take Surgery Partners private in 2025, underscoring the enduring strategic value of the company's network.

Industry Context

The acquisition aligns with a broader trend in the healthcare sector, where large hospital systems are actively acquiring outpatient surgical centers to diversify their revenue streams beyond traditional inpatient services. Surgery Partners operates a network of more than 176 surgical facilities across 30 U.S. states, making it an attractive asset in this consolidating landscape.

The market reaction occurred against a mildly positive backdrop for U.S. equities, with the S&P 500 and Nasdaq Composite both posting modest gains during the session.