Surgery Partners Inc. (Nasdaq: SGRY) has reached a deal to acquire National Surgical Healthcare, an owner of medical facilities, from middle-market private equity firm Irving Place Capital for nearly $760 million. Bain Capital Private Equity is providing funding for Surgery Partners’ acquisition of NSH, and will acquire a stake in the buyer’s company as part of the deal.

NSH, based in Chicago, operates 21 surgical facilities in partnership with local physicians. The target’s operations specialize in orthopedic surgery, spine and back, pain management, and neurosurgery. The deal combines two businesses forming an inpatient and outpatient surgical provider with a portfolio of 125 surgical facilities, 58 physical practice operations, and complementary ancillary services.

National Surgical Healthcare

Surgery Partners is a Nashville, Tennessee-based is a healthcare service company providing outpatient surgical and ancillary care. The buyer was founded in 2004 and has more than 150 locations across 29 states. Surgery Partners’ operations include ambulatory surgical facilities, surgical hospitals, a diagnostic laboratory, physician practices and urgent care facilities.

Bain Capital is a Boston-based private equity firm that has made more than 270 investments since its inception in 1984. The firm is acquiring its stake in Surgery Partners from H.I.G. Capital. The firm’s investment portfolio consists of companies across a variety of industries, including: consumer and retail, financial services, business services, healthcare, industrial, and technology media and telecommunications. Bain Capital recently: bought insurance technology company Vertafore; backed retail marketer Daymon Worldwide; and also sold Apple Leisure Group, a vacation hospitality conglomerate for the Caribbean and Mexico region.

The healthcare sector has recently been home to a wave of many deals. Middle-market deals involving healthcare, medical and nursing home facilities include: Global Healthcare REIT Inc.’s purchase of Tulsa, Oklahoma-based nursing facility for $2 million and Vibra Healthcare LLC’s acquisition of two facilities for $20.7 million from Kindred Healthcare Inc. Other deals within the sector features: Court Square Capital Partners acquired dental products distributor NDC from Silver Oak Services Partners, and C.R. Bard Inc. (NYSE: BCR) bought catheter supplier Liberator Medical Holdings Inc.

Jefferies LLC is serving as financial adviser to Surgery Partners, while Ropes & Gray LLP is serving as legal counsel. PwC LLP is acting as accounting adviser to Surgery Partners and Bain Capital. Kirkland & Ellis is acting as legal counsel to Bain Capital. J.P. Morgan Securities LLC (NYSE: JPM) is acting as financial adviser to NSH, while Weil, Gotshal & Manges LLP is serving as legal adviser.

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