Tenet Healthcare Corporation will acquire a portfolio of up to 45 ambulatory surgery centers (ASCs) from SurgCenter Development (SCD) for $1.28 billion. These ASCs will be operated by Tenet’s United Surgical Partners International (USPI) subsidiary as part of its ambulatory surgery platform. The 45 centers are located in Arizona, Florida, Indiana, Louisiana, Maryland, Ohio, New Hampshire, Texas, and Wisconsin.
Under the terms of the transaction, Tenet will purchase majority interests in up to 45 centers by fully acquiring SCD’s interests, and partially acquiring interests from physician partners, for approximately $1.1 billion in cash and the assumption of approximately $18 million of center-level debt. USPI will hold up to 60% ownership interest in each center, with the remainder owned by physician partners.
Tenet will consolidate the financial results of the 45 ASCs within its Ambulatory Care segment with the exception of two centers in which USPI will own a minority interest. Tenet has completed the acquisition of a majority of the 45 centers and expects to complete the acquisition of the remainder of the portfolio by the end of 2020, pending the finalization of documentation and the receipt of certain state approvals.
Goldman Sachs & Co LLC acted as financial advisor to Tenet, and Willkie Farr & Gallagher LLP served as legal counsel.