H.I.G. Capital News


Chris Laitala
Managing Director

Matt Lozow

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H.I.G. Capital’s Portfolio Company Surgery Partners Completes Acquisition of Symbion Holdings Corporation, Creating One of the Largest ASC Chains in the U.S.

NEW YORK – November 4, 2014 – Surgery Center Holdings Inc. (“Surgery Partners”), a portfolio company of H.I.G. Capital, LLC (“H.I.G.”), today announced it has completed its previously announced acquisition of Crestview Partners’ portfolio company Symbion Holdings Corporation (“Symbion”), for a total purchase price of $792 million. The combined business, which is the second (2nd) largest and fastest growing independent Ambulatory Surgery Center (“ASC”) operator in the U.S., will generate over $900 million in annual revenues. As part of the transaction, Surgery Partners entered into a $1.4 billion new senior secured credit facility to finance the cash consideration paid to consummate the transaction, as well as to repay borrowings under Surgery Partners’ and Symbion’s existing credit facilities.

The combined company will operate facilities in 26 states and remain focused on providing high quality, low-cost clinical services from over 2,400 physicians to over 500,000 patients annually. In addition to surgical services, the businesses operate numerous outpatient ancillary lines of care, including anesthesia, diagnostic testing, radiation oncology, pharmacy, urgent care, and physician services. Surgery Partners and Symbion expect the combination will enhance its ability to offer patients a wide array of these complimentary services.

“This transaction represents a combination of two industry leading platforms focused on improving quality and affordability in the delivery of healthcare across the United States,” said Mike Doyle, Chief Executive Officer of Surgery Partners. “This merger allows us to expand our patient-centric core surgical business and geographic footprint as well as offer our related ancillary lines of care to a broader universe of providers. We look forward to expanding the reach of our healthcare delivery model, which has been designed to benefit patients, providers, and payors alike, and continuing to promote clinical excellence in short stay surgical facilities nationwide.”

“We look forward to building upon the momentum of Surgery Partners as it continues to transform the ASC industry,” said Chris Laitala, Managing Director of H.I.G. “We are excited to support the combined business, including our new partners at Symbion, in continuing to construct a best-in-class, cost-effective, national integrated care model for surgical specialists. And we formally welcome their management team, employees, and physician partners as we join together to execute on our most important day-to-day objective: delivering ideal outcomes in a physician and patient friendly healthcare environment.”

Jefferies LLC acted as financial advisor to Surgery Partners and provided committed debt financing for the transaction. McDermott Will & Emery LLP and Ropes and Gray LLP acted as legal advisors to H.I.G.

Morgan Stanley & Co. LLC acted as financial advisor and Waller Lansden Dortch & Davis, LLP acted as legal advisor to Symbion Holdings Corporation. Davis Polk & Wardwell LLP acted as legal advisor to Crestview Partners.

About Surgery Partners
Surgery Partners is a leading owner and operators of ASCs. The Company was founded in 2004 and since then has established a national platform of ASCs, with surgical expertise in orthopedics, ophthalmology, pain management, gastrointestinal, ENT and general surgery. Surgery Partners additionally provides ancillary services to support its physician-partners and improve the quality and growth of its facilities.

About Symbion
Symbion owns and operates a national network of short stay surgical facilities. Their surgical facilities, which include ASCs and surgical hospitals, primarily provide non-emergency surgical procedures across many specialties, including, among others, cardiology, gastroenterology, ophthalmology, orthopedics and pain management. Symbion’s surgical hospitals also provide acute care services such as diagnostic imaging, laboratory, obstetrics, oncology, pharmacy, physical therapy and wound care.

About H.I.G. Capital
H.I.G. is a leading global private equity investment firm with more than $17 billion of equity capital under management.* Based in Miami, and with offices in Atlanta, Boston, Chicago, Dallas, New York and San Francisco in the U.S., as well as international affiliate offices in London, Hamburg, Madrid, Milan, Paris and Rio de Janeiro, H.I.G. specializes in providing capital to small and medium-sized companies with attractive growth potential. H.I.G. invests in management-led buyouts and recapitalizations of profitable and well managed manufacturing or service businesses. Since its founding in 1993, H.I.G. has invested in and managed more than 200 companies worldwide. The firm's current portfolio includes more than 80 companies with combined sales in excess of $30 billion. For more information, please refer to the H.I.G. website at www.higcapital.com.

About Crestview Partners
Founded in 2004, Crestview Partners is a value-oriented private equity firm focused on the middle market. The firm is based in New York and has approximately $6 billion of assets under management. The firm is led by a group of partners who have complementary experience and distinguished backgrounds in private equity, finance, operations and management. Crestview has senior investment professionals focused on sourcing and managing investments in each of the media, energy, financial services and healthcare industries.

* Based on total capital commitments to funds managed by H.I.G. Capital and its affiliates.