Envision finishes suitor management presentations
06 APR 2018
Envision Healthcare [NYSE:EVHC], the Nashville, Tennessee-based healthcare services group exploring a sale, is understood to have wrapped up management presentations for suitors this week.
Five groups of suitors are pursuing Envision: KKR [NYSE:KKR]; The Blackstone Group [NYSE:BX] through its portfolio company Team Health; CVC Capital Partners with Leonard Green & Partners; a Hellman & Friedman, Onex[TSX:ONEX] and Clayton Dubilier & Rice consortium; and a The Carlyle Group [NASDAQ:CG] and TPG partnership.
Late last year, Envision announced plans to pursue strategic alternatives after coming under pressure from activist investors and reaching a deal to sell its American Medical Response business to KKR. The company plans to use USD 2.1bn in net proceeds from the divestiture to reduce its USD 6.3bn debt load, picked up from a series of acquisitions.
This news service reported last month that in addition to UnitedHealth [NYSE:UNH], a couple of other strategics have shown interest in Envision’s ambulatory health unit. HCA Healthcare [NYSE: HCA] is among the suitors understood to be in the mix. Strategic interest, including UnitedHealth’s, has been confined to the ambulatory business alone, which accounts for 17% of company sales, it was reported.
Bloomberg News reported last month UnitedHealth had left the Envision process after Envision filed suit against the health insurance giant for breaching a 2009 agreement. The status of UnitedHealth is unclear.
This news service previously named KKR, Blackstone and CVC as suitors. Bloomberg had named H&F, Onex, CD&R, Carlyle and TPG.
This news service previously named KKR, Blackstone and CVC as suitors. Bloomberg had named H&F, Onex, CD&R, Carlyle and TPG.
This news service previously reported on 19 March that the next milestone for the sale process was expected to be in six weeks when bidders may be asked to table bids with debt and equity financing commitments once management presentations and due diligence are wrapped up. If a deal is struck it is expected to be announced in a couple of months, same report said.
This news service reported in early February that Envision’s board was interested in seeing what valuations suitors offer in the preliminary bids and how they compare against other alternatives for Envision like remaining an independent company.
Evercore, Guggenheim Partners and JPMorgan are working on the review, as reported.
Envision declined comment. HCA Healthcare and Leonard Green did not respond to requests for comment.