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Blackstone Will Buy Staffing Firm TeamHealth for $6.1 Billion in Cash

Monday, October 31, 2016 6:25
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moneyPrivate equity giant Blackstone Group LP (NYSE:BX) will acquire hospital staffing firm TeamHealth Holdings Inc (NYSE:TMH) for about $6.1 billion, the companies announced this morning.

The deal, which was unanimously approved by TeamHealth’s Board of Directors, entails Blackstone and certain co-investors will pay $43.50 per share in cash. That fetching price represents a 33% premium over TMH’s closing price back on October 3, which is the last day before rumors surfaced that the company was pursuing a sale.

Interestingly, the merger agreement includes a “go-shop” period, where TeamHealth can solicit other potential bids for 40 days after a definitive agreement is reached. The company noted it would not provide any public updates about that process while it’s ongoing, unless they actually reach a higher deal.

Assuming it goes through, the transaction is expected to close in the first quarter of 2017. TMH commented via press release:

“We are pleased to reach this agreement with Blackstone, which maximizes value for all TeamHealth stockholders,” said Leif Murphy, President and Chief Executive Officer of TeamHealth. “We remain committed to delivering the highest quality patient care and supporting our affiliated clinicians, hospital and post-acute partners. Blackstone is focused on working closely with TeamHealth to achieve our strategic objectives and drive innovation and operational excellence in the context of the evolving U.S. healthcare marketplace. We continue to believe that TeamHealth is uniquely positioned to leverage our national scale and functional expertise to drive high quality patient care, operational efficiencies and physician satisfaction in hospital-based and post-acute settings.”

Blackstone shares were inactive in premarket trading Monday. Year-to-date, BX has fallen 12.79%, versus a 4.25% gain in the benchmark S&P 500 during the same period.


Meanwhile, TeamHealth shares surged $5.65 (+15.35%) to $42.45 in premarket trading Monday. Prior to today’s deal announcement, TMH had fallen 16.15% year-to-date.


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