Patient Square Capital, run by Jim Momtazee, acquired Hanger, Inc. (NYSE: HNGR) on July 21 for $1.25 billion, marking Patient Square’s third deal of the year.
Headquartered in Austin, Texas, Hanger, Inc. provides orthotic and prosthetic (O&P) services through its patient care segment, with approximately 875 locations nationwide. It recorded revenue of more than $1.120 billion in 2021.
Patient Square Capital was founded in 2020 and is based in Menlo Park, California.
Hanger stockholders will receive $18.75 per share, representing an approximately 29% premium to the 30-day volume-weighted average price ending July 20, 2022. The transaction will be financed through a combination of committed equity financing provided by Patient Square Equity Partners, LP, as well as committed debt financing to be led by funds managed by Ares Capital LLC.
The transaction is expected to close in the fourth quarter of 2022 and upon closing, Hanger will become a privately held company with its common stock no longer traded on the New York Stock Exchange.
BofA Securities, Inc. is acting as the exclusive financial advisor to Hanger and Foley & Lardner LLPis serving as legal counsel. Greenberg Traurig, LLP is acting as M&A legal counsel, Kirkland & Ellis LLP is acting as financing legal counsel and Latham & Watkins LLP is acting as healthcare legal counsel to Patient Square.
According to the LevinPro HC database, this deal marks the 56th Rehabilitation deal of the year and 7th Rehabilitation acquisition of the month. This deal also has the largest disclosed price in the Rehabilitation sector for the year, so far. Other active acquirers this year are Confluent Health with six deals, Ivy Rehab with four deals and Upstream Rehabilitation with five deals.
