Surgery Partners Stock Soars on Reported $6 Billion Take-Private Deal

Surgery Partners Inc. (NASDAQ: SGRY) shares jumped more than 21% in pre-market trading on Monday following a Financial Times report that the surgical care provider has agreed to be taken private by Bon Secours Mercy Health. The deal values Surgery Partners at approximately $6 billion, including debt, according to the report which cited people familiar with the matter.

The Proposed Transaction

Under the terms of the reported agreement, Bon Secours, one of the largest non-profit health systems in the U.S., would acquire a majority stake in Surgery Partners. Key details from the report include:

• Price: The acquisition price is reportedly about $20 per share.
• Valuation: The $6 billion total valuation includes approximately $3.5 billion of debt.
• Existing Shareholder: Private equity firm Bain Capital, which has been a shareholder since 2017, would reportedly retain its stake of almost 40%.

This development follows more than a year of intermittent efforts to sell the company. Last year, Surgery Partners reportedly walked away from a separate take-private deal led by Bain that had a higher valuation of $6.7 billion, including debt.

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Market Impact and Strategic Context

The reported offer price of $20 per share represents a significant premium for shareholders. Prior to Monday's pre-market surge, Surgery Partners' stock had fallen 31% over the past year, closing just under $16 and giving the company a market capitalization of nearly $2.1 billion.

For Bon Secours, which operates 47 hospitals and had about $14 billion in revenue last year, the acquisition would accelerate its expansion into the growing outpatient care market. Surgery Partners operates a network of 176 surgery centers and hospitals across 30 U.S. states.

The deal reflects a broader trend of consolidation in the healthcare sector, particularly by non-profit systems seeking to expand their outpatient footprint. Earlier this year, Ascension, another Catholic non-profit health system, struck a $3.9 billion deal to acquire Amsurg, a company with a similar business model to Surgery Partners.