BHC Sector Booms as Acadia Healthcare Explores a Sale
Mergers and acquisitions in the Behavioral Health Care sector are booming in 2018, with 68 transactions made public through mid-October, 21% higher than the total in 2017. Now comes the report that one of the sector’s largest publicly traded companies, Acadia Healthcare Company (NASDAQ: ACHC), is in talks with a few interested parties to sell itself, and most likely go private. On October 18, Reuters reported the Franklin, Tennessee-based company was fielding interest from the private sector, naming KKR & Co. (NYSE: KKR) and TPG Global as two firms that have approached Acadia. With a market cap of $3.4 billion and debt of $3.14 billion (less $79.5 million cash), Acadia... Read More »
Physician Practices Kept Consolidating in Q2:18
Investor interest in physician medical groups ramped up significantly in 2018, with 55 transactions announced in the first quarter, followed by 53 deals in the second quarter. The second quarter deals represent 29% of the total of 184 announced in the previous 12 months. Deal volume slipped 4% compared with the previous quarter but posted a 61% increase versus the same quarter a year earlier. Physicians in small practices have been under growing pressure from regulations and legislation, changes in reimbursement cycles and episodes of care. Under MACRA, they may be the lead provider when it comes to bundled payments, which makes primary care and hospital-based physicians of interest to... Read More »
June 2018 Deal Volume Settles into Summer Mode
June was a gentle month for deal making. As the first month of summer, preliminary data shows a slight drop in deal volume for the month, compared with a busier May. Investors seem to be taking the adage “Buy in May and go away” seriously. With a preliminary total of 122 transactions made public in June 2018, deal volume was down 10% compared with May’s 135 deals. Deal volume compared to June 2017 was off 8%. Long-Term Care deals, which typically make up the greatest share of monthly volume, were down to just 22 transactions (18% share) compared with 35 in the previous month. That’s the way the second quarter played out in this sector, with April deal volume spiking... Read More »
Envision Healthcare Sells to KKR for $9.9 Billion
It’s been a bumpy road for Envision Healthcare (NYSE: EVHC). The company went public in 2013, with revenues of $3.7 million. In 2018, it is going private with KKR & Co. (NYSE: KKR), with revenues of $8.0 billion. In 2014, Envision operated American Medical Response, Inc., an air ambulance company; EmCare Holdings, provider of physician practice management services for emergency departments, inpatient physician services or hospitals; and practice management services company Evolution Health. Since then, it acquired seven physician practices, beginning with Phoenix Physicians, LLC in Fort Lauderdale, Florida ($170 million, June 2014) to Emergency Physicians Medical Group ($12o... Read More »Schedule a demo
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