Blackstone acquires $6.1bn Team Health

The deal reunites the private equity firm with the healthcare staffing company it previously acquired in 2005.

Blackstone has acquired healthcare staffing company Team Health in a $6.1 billion deal, reuniting the private equity firm with the company it previously owned for eight years.

Blackstone is de-listing the business from the New York Stock Exchange, paying $43.50 per share, a premium of 33 percent on its last closing price. Team Health sells outsourced medical care through 19,000 affiliated physicians and clinicians.

In August the Tennessee-based business reported net revenue of $1.12 billion for the second quarter of 2016, with EBITDA of $119.2 million. At the time it said it expected total revenues of between $4.64 billion and $4.71 billion for 2016.

The company is under private equity ownership for the third time. Blackstone previously bought the company in 2005 for around $1 billion from a consortium of private equity investors including Madison Dearborn Partners, which had owned the company since a 1999 buyout.

In 2009 Blackstone began the process of floating the company, although poor market conditions delayed the sale of its own shares. Blackstone offered to sell 9.3 million of its shares in the company, expected to be priced at up to $16. But the firm ended up selling none of its shares at this point, with shares owned by other investors selling for $12 each.

After delaying its share sales, the New York private equity giant sold blocks of shares over a number of years, fully exiting the company in 2013.

The latest deal includes the acquisition of 8 percent of Team Health’s shares from New York hedge fund Jana Partners. The transaction is expected to close in the first quarter of 2017.