Bon Secours nears $6 billion takeover of Surgery Partners

Bon Secours is nearing a $6 billion takeover of Surgery Partners, the Financial Times reports. The deal values Surgery Partners at about $20 per share. The newspaper says an announcement could come as soon as Monday.

Bon Secours is a Cincinnati-based Catholic nonprofit health system. Becker's Hospital Review reports that it operates 47 hospitals across Ohio, Virginia, Kentucky, Maryland and South Carolina. Healthcare Dive reports that it merged with Mercy Health in 2018, creating a system with $8 billion in annual revenue at the time.

Surgery Partners is based in Brentwood, Tennessee. It runs ambulatory surgery centers, which are outpatient facilities. Becker's ASC, citing MarketBeat, reports that it had more than 200 locations and 4,600 affiliated physicians as of 2024. The same report says the company raised its full-year guidance in 2024 to more than $3 billion in revenue and more than $508 million in adjusted EBITDA, a measure of earnings before interest, tax, depreciation and amortisation, as the company adjusts it. Becker's ASC also reports that Bain Capital was the largest shareholder in 2024, with a 39 per cent stake.

In 2024, Becker's ASC, citing MarketBeat, reported takeover interest in Surgery Partners from UnitedHealth Group and from the private equity firm TPG.

The $20 per share figure gives holders a price to measure against once terms are confirmed. If an announcement follows, Surgery Partners shares would likely trade relative to that level. The gap between the share price and $20 would show how much of the premium the market already prices in. A Monday announcement would turn a press report into a definitive offer. The $6 billion figure still depends on final terms. The question for now is whether the reported price holds.