HIG Inks Deal to Buy NovaMed
PE firm's affiliate, Surgery Partners, will take the ambulatory service business private for $214 million in cash.
January 21, 2011
H.I.G. Capital is set to acquire NovaMed through its ambulatory surgical portfolio company, Surgery Partners.
The deal comes weeks after the firm agreed to take Zicam maker, Matrixx, private in a $75.2 million deal. That transaction is still going through its go-shop period.
NovaMed operates and produces ambulatory surgery centers. It currently owns a majority stake in 37 surgery centers within 19 states.
H.I.G. offered the NASDAQ-listed company $13.25 per share in cash to take the company private. The deal is valued at $214 million, which includes debt of $105 million.
Jefferies Finance and THL Credit have committed to provide debt financing for the transaction.
William Blair is serving as the financial advisor and DLA Piper is serving as legal advisor to NovaMed’s board of directors. McDermott, Will and Emery is serving as legal advisor to H.I.G. Capital and Surgery Partners.
The deal is expected to close within the second quarter of 2011.
H.I.G. added Surgery Partners to its roster last year January with an undisclosed majority investment. Like NovaMed, Surgery Partners acquires, develops and manages free-standing ambulatory surgical centers in partnership with local physicians.
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