Envision Healthcare

Envision Healthcare Holdings — the large American supplier of medical services for hospitals and individuals. The company offers services of emergency medical service, anesthesiology and surgery and also transport services.

2018

Purchase of the center of X-ray radiology Decatur Radiology Physicians

In October, 2018 Envision Healthcare announced purchase of the center of X-ray radiology Decatur Radiology Physicians. Read more here.

KKR purchased Envision Healthcare for $9.9 billion

In June, 2018 the private investment company KKR announced purchase of Envision Healthcare  for $5.57 billion. Taking into account debts of the American supplier of medical services the cost of the transaction reaches $9.9 billion.

KKR purchases Envision Healthcare, proceeding from assessment of the last in $46 for an action that is one third more than the cost of securities in November, 2017 when Envision Healthcare announced consideration of strategic options for further business development. That process was started after the weak financial results caused by decrease in number of hospitalization of patients.

Stocks of provider of medical services Envision Healthcare rose in price as the private equity fund of KKR announced its purchase for $9.9 billion taking into account a debt

As notes the agency Bloomberg, Envision KKR is well familiar. In a portfolio of the investor the service provider of ambulance, largest in the USA, and one more subsidiary company — WebMD Health appears Envision AMR. These assets were purchased by KKR for 2.4 and 2.8 billion dollars respectively.

As a result of sale of Envision Healthcare to the private investor will stop being the public company. Its actions grew in price for 2.3% and reached $44.65 after the declaration of the transaction.

KKR estimated Envision Healthcare at the corrected net profit increased by 10.9 before payment of taxes, percent, wear and depreciation for the 12-month period.

Commenting on merger of Envision Healthcare, the head on investments in the health sector of KKR Jim Momtazee called the company the leading supplier of medical services in a health care system in which interaction between the doctor and the patient has a noticeable impact almost on all solutions.

As financial advisors of Envision Healthcare within the transaction J. P. Morgan Securities,  Evercore Partners and  Guggenheim Securities acted. On a legal issue of medical provider advised Wachtell, Lipton, Rosen & Katz and Bass, Berry & Sims, and from KKR these functions were performed by Simpson Thacher & Bartlett.^[1]

2017: Sale of business of services of ambulance for $2.4 billion

In August, 2017 Envision Healthcare announced sale of business on rendering services of ambulance. The company continues to be focused by this transaction on the main sources of income.

The division of Envision American Medical Response rendering services of emergency medical service (the leader of the American market, reports Reuters), is on sale private investment company KKR & Co. The last also possesses Air Medical Group which as it is reported, as a result of consolidation with American Medical Response will be able to replace expensive flights by helicopter with small distances with automobile crews of ambulance.

American Medical Response ambulance car

Associations the company will be able annually to transport more than 5 million patients in 46 states using land and air vehicles, the press release says.

The KKR company will pay $2.4 billion for purchase of American Medical Response. Money will be transferred from own means of the buyer (without attraction of the credits).

The company which will appear after closing of the transaction (it is planned on the fourth quarter 2017), will receive a new name. What, did not solve yet.

Reuters notes that the asset sale in the field of ambulance will allow Envision to optimize business after merge to AmSurg in 2016. Envision will focus on provision of services to the practicing doctors and the centers of out-patient  surgery.^[2]

We are glad that found the strong partner for American Medical Response — the president and the CEO of Envision Christopher Holden says. — The management of Envision conducted a careful research of strategic alternatives for AMR. This agreement saves commitment to traditions of AMR and allows Envision to concentrate on the strategy focused on medicine and services including services to medical institutions, postoperative leaving and out-patient surgery.

2016: Merge to AmSurg

On June 16, 2016 Envision Healthcare announced merge to the competitor of AmSurg within which in the American market of medical services one of leaders worth about $15 billion will appear.

Shareholders of Envision will possess 53% of the united company which will work under the name of Envision Healthcare. The transaction assumes exchange of shares in the ratio 0.334 stocks AmSurg on each security of Envision that corresponds to assessment of $25.89 for the stock Envision or $4.8 billion.

In the American health care market the company worth $15 billion is created

As notes the Bloomberg agency which is not taxed the consolidation Envision and AmSurg will create one of the suppliers of medical services, largest in the USA, such as emergency help, anesthesia, radiology and services in care of children.

Besides, merge will help Envision and AmSurg to receive more advantageous conditions of cooperation with insurance companies which also are in process of consolidation.

The CEO of AmSurg Christopher Holden will hold the same position in Envision Healthcare. The chairman of the board and the head of Envision William Sanger will become the executive chairman of the board of directors of the united company.

It is noted that Envision Healthcare will be able to come to profit in 2017, and within three years merge will provide synergy in the amount of 100 million dollars from cost reduction and increase in revenue. It is going to close the transaction at the end of 2016.

Financial Barclays and Evercore Partners act as consultants of Envision for the transaction of merge to AmSurg. The AmSurg company is advised by Guggenheim Securities, JPMorgan Chase & Co. Debevoise & Plimpton and Bass, Berry & Sims.^[3]

Notes