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TRANSACTIONS
Private equity surgery acquisition
trends: 6 things to know
By Patsy Newitt
T
he number of surgical services and facilities funded and acquired by
private equity firms has increased over the past 20 years, according to a
cross sectional study published Nov. 1 in JAMA Surgery.
The study examined acquisition and funding of surgical practices and facili-
ties from Jan. 1, 2000, to Oct. 30, 2020, using financial databases Zephyr, S&P
Global and Privco.
Six things to know:
1. The study found that 193 investments were made by 101 PE firms to acquire
or fund facilities.
2. Fifty-two percent involved ASCs, and 48 percent involved surgical services
3. Most investments, 61 percent, led to the acquisition of the facility.
4. The number of PE investments increased each year — from four in 2000
to 19 in 2019.
5. The mean price of the acquisitions was $143 million.
6. Most practices acquired and funded by PE firms were in the South, however,
after 2016, the number was similar among census regions. n
3-building Tennessee property with
ASC sold to private equity firm
By Patsy Newitt
A three-building medical office portfolio with an ASC in Knoxville, Tenn., has
been acquired by a private equity group.
The portfolio was sold to Kansas City Mo.-based Crown MedRealty Partners, Al-
len Inman, managing partner of seller Capital Real Estate Group, said Dec. 10.
The 45,359-square-foot property is leased to an ophthalmology group and
features a joint venture ASC from AmSurg and practicing surgeons. n
US Eye completes North
Carolina acquisition
By Marcus Robertson
S
arasota, Fla.-based multispecialty practice US Eye has expanded into
North Carolina with the closing of its acquisition of Elizabeth City, N.C.-
based Albemarle Eye Center and Precision Eye Care, according to a Dec.
9 Chowan Herald report.
Albemarle Eye Center and Precision Eye Care offers LASIK, laser cataract
surgery, glaucoma treatment, eye exams and oculoplastic services, according
to the report. Three ophthalmologists and five optometrists operate out of the
practice's six locations.
With the addition, US Eye has 50 locations nationwide, the report said. n
Surgery Partners
wins $45M
in settlement
over $760M
ASC acquisition
By Patsy Newitt
B
rentwood, Tenn.-based Surgery
Partners received $45 million in a
settlement against HIG Capital and
Bain Capital Investors over a $760 million
acquisition of an ASC in 2017, the parties
told Delaware Chancery Court on Nov. 23,
according to a Law360 report.
e settlement resolves a suit filed aer
Surgery Partners acquired National Surgical
Healthcare allegedly using arrangements that
led to an unfair price for public stockholders.
e deal involved three transactions:
1. HIG sold all its shares in Surgery Partners
to Bain for $502.7 million.
2. Surgery Partners sold new preferred shares
to Bain for $310 million.
3. Surgery Partners bought the ASC from
Irving Place Capital for $760 million.
According to the original suit filed by Sur-
gery Partners shareholder Melvyn Klein in
December 2017, Bain increased the price it
would pay for the common stock to receive a
more favorable transaction.
In 2018, the Delaware Chancery Court threw
out a direct claims suit against the three par-
ties for breach of fiduciary duty, but it upheld
derivative claims for breach of fiduciary
duty against HIG and aiding and abetting
claims against Bain.
Under the proposed settlement, Bain
will pay $12.5 million and HIG will pay
$32.5 million. n
