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KKR to take Envision private for $5.57 billion in healthcare push


(Reuters) - said on Monday it will take U.S. services provider Corp private in a deal valued at $5.57 billion, its latest acquisition in the

The firm saw off competition from peers Carlyle Group, and others as it sealed the deal for $46 per share - a premium of 5.4 percent to Envision's last close on Friday.

Envision's shares were up 2.4 percent at $44.7 in premarket trading. Including debt, the deal is valued at $9.9 billion.

KKR already owns Envision's AMR, the largest U.S. provider of ambulance services, which it bought for $2.4 billion last year and merged with its helicopter ambulance service. The firm also took private for about $2.8 billion.

firms, armed with a record $1 trillion in cash, are investing more in public companies than at any time since the financial crisis.

So-called take-private deals worldwide reached a decade high of $109 billion last year, according to data provided to from industry tracker

KKR itself said last month it would buy company BMC Software, in a deal that could be worth about $8.5 billion with debt, according to Reuters' sources.

As of March 31, KKR had $176 billion in assets under management. It held $1.88 billion in cash and cash equivalents, according to its latest earnings report.

In the healthcare industry, Envision's buyout is the latest in a spate of mergers and acquisitions activity among networks, a business that has struggled in recent years to adapt to changes in how U.S. health insurers reimburse providers.

Envision said the deal marks an end to its efforts to find strategic alternatives, which the company launched after posting disappointing third-quarter results last year. The company has been struggling with lower patient admissions at

Ryan Daniels, an with William Blair, said the purchase price was a fair multiple for Envision given a number of headwinds facing the industry. Daniels also cut the rating on Envision to "market perform", citing little to no possibility of other bidders emerging.

reported the deal on Sunday, citing a source. The deal is expected to close in the fourth quarter.

Envision was advised by J.P. Morgan, and

(Reporting By in Bengaluru; Editing by Saumyadeb Chakrabarty)

(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

First Published: Mon, June 11 2018. 20:52 IST