KKR to buy Envision Healthcare for $9.9bn in cash

Envision Healthcare looked set to jump at the open on Monday after agreeing to be bought by private equity group KKR for around $9.9bn in an all-cash deal that includes debt.

Under the terms of the transaction, which has been unanimously approved by Envision's board of directors, KKR will buy all of the outstanding shares of common stock for $46 a share. This is a 32% premium to the stock's volume-weighted average share price from 1 November 2017, the day after it first announced that it was reviewing strategic alternatives.

President and chief executive officer Christopher A Holden said: "Envision’s leadership team -including both the board and management - have been singularly focused on driving value for our shareholders and have taken decisive action in furtherance of that goal, including the implementation of a comprehensive operational improvement plan and a robust review of strategic alternatives.

"Today’s announcement reflects the extensive efforts by our team to explore all opportunities to deliver value for our shareholders."

Jim Momtazee, head of KKR’s health care investment team, said: "Envision is a leading provider of physician-led services in a health care system in which physician-patient interactions have a pronounced impact on nearly all health care decisions. Envision has a very strong reputation for delivering high-quality, patient-focused care through its network of 25,000 clinical professionals at thousands of hospitals, surgery centres and alternate sites of care across the country.

"We are excited to partner with the outstanding team led by Chris Holden to help build upon the strong foundation in place and accelerate Envision’s growth going forward."

On completion of the deal, which is targeted for the fourth quarter of the year, Envision will become a private company and its common stock will no longer by traded on NYSE.

At 1250 BST, the shares were up 3.2% in pre-market trade to $45.04.