By Christy Santhosh
Oct 26 (Reuters) – Surgery Partners said on Monday it would be taken private by HealthSpan Partners, an affiliate of nonprofit hospital system Bon Secours Mercy Health, in a deal valued at about $5.7 billion including debt, sending its shares up 46%.
Private equity group Bain Capital, which has been a minority shareholder since 2017 and owns 39% of Surgery Partners, will back the deal and retain a major ownership stake after closing, the companies said.
The remaining shareholders will receive $23.50 per share, implying a premium of 49% to the stock’s last close.
The deal, expected to close in the first quarter of 2027, highlights a growing push into outpatient surgery by healthcare operators, with not-for-profit health system Ascension having purchased surgical firm AmSurg for $3.9 billion earlier this year.
The addition of Surgery Partners will expand Bon Secours Mercy Health’s US footprint well beyond its more than 45 hospitals, according to the hospital system, adding over 200 sites across 30 states and about 5,000 affiliated physicians.
The deal also ends a two-year strategic review during which Surgery Partners drew interest from potential buyers including Bain Capital, whose bid to take the company private last year was rebuffed.
Surgery Partners operates outpatient surgery centers, short-stay hospitals and related healthcare services across the US.
“From a strategic perspective, there is some market overlap in Ohio and Kentucky, but the potential transaction would substantially broaden the system’s (Bon Secours Mercy Health) national footprint, so we do not expect meaningful FTC antitrust risk issues,” said Mizuho analyst Ann Hynes.
Hynes said Bain retaining its ownership position under the proposed transaction is expected to help the deal close.
In 2025, Surgery Partners generated $3.31 billion in revenue and reported an adjusted profit of 47 cents per share.
(Reporting by Christy Santhosh in Bengaluru; Editing by Jonathan Ananda)
