Greenwood, Village, Colorado-based health care services operator Envision Healthcare Holdings Inc. (NYSE: EVHC) is buying ambulance operator Rural/Metro Corp. from Warburg Pincus.
Scottsdale, Arizona-based Rural/Metro serves more than 700 communities in 21 states and is targeting to finish 2015 with about $600 million in revenue.
Warburg Pincus bought Rural/Metro in 2011 for about $438 million in cash and the company went bankrupt in 2013 because of its excessive debt load. At the time, Rural/Metro blamed operational challenges for its declining revenue.
“As health care services models shift toward a more coordinated approach, the role of medical transportation clinicians takes on greater strategic significance,” says Envision CEO William Sanger.
The purchase of Rural/Metro follows on the heels of Envision’s announcement in January that it is buying healthcare staffing company Vista Staffing Solutions from On Assignment Inc. (NYSE: ASGN) for undisclosed terms.
In another health care transportation deal, Cincinnati, Ohio-based-Cintas Corp. (Nasdaq: CTAS) says it will purchase Irvine, California-based medical transportation services provider Zee Medical from McKesson Corp. for $130 million in cash.
Envision is receiving financing from Goldman, Sachs & Co. (NYSE: GS) and Barclays plc (LON: BARC) and expects to complete its latest deal by the end of the year.