TPG Inc. and UnitedHealth Group Inc. Pursue Surgery Partners Inc. Acquisition

TPG Inc. and UnitedHealth Group Inc. Eyeing Surgery Partners Inc.

TPG Inc. and UnitedHealth Group Inc. are among the suitors interested in acquiring Surgery Partners Inc., as shared by sources familiar with the matter. The buyout firm and health insurance giant have signaled their preliminary interests in a deal, as other private equity firms and strategic bidders also circle Surgery Partners.

Market Reaction to Acquisition Talks

Surgery Partners experienced a surge in stock price, rising as much as 19% during New York trading on Friday, marking its most significant gain since November 2022. The stock closed up 18%, reaching $33.69, and pushing the company's market valuation to around $4.3 billion. This comes after a challenging year, where shares had previously dropped 15%.

Stakeholders and Future Prospects

• Bain Capital remains the largest stakeholder, holding a 39% share in Surgery Partners.
• The discussions are preliminary, with no confirmed outcomes yet.
• Representatives from Bain, TPG, and UnitedHealth have opted not to comment on the situation.

Surgery Partners is currently collaborating with a financial adviser to evaluate its options, including a potential sale, according to Bloomberg News. Established in 2004, Surgery Partners operates over 180 facilities across the United States, including surgery centers and urgent care facilities.

Financial Expectations

In May, the company projected at least $3.05 billion in annual revenue, with adjusted earnings before interest, taxes, depreciation, and amortization anticipated to exceed $505 million.