Surgery Partners ends acquisition talks with Bain Capital

BRENTWOOD, Tenn. - Surgery Partners, Inc. (NASDAQ:SGRY), currently valued at approximately $3 billion in market capitalization, announced Tuesday that discussions regarding Bain Capital Private Equity’s proposal to acquire all outstanding shares not already owned by Bain Capital have concluded without an agreement.

A Special Committee of independent directors determined that Surgery Partners’ prospects as an independent publicly traded company exceeded the value of Bain Capital’s non-binding proposal. The committee worked with independent financial and legal advisors to evaluate the offer. According to InvestingPro data, the company maintains a "GOOD" overall financial health score, with particularly strong growth prospects as net income is expected to improve this year.

"Surgery Partners offers a unique, scaled platform in the high-growth outpatient surgical care market," said Brent Turner, Chairman of the Independent Committee. "The Independent Committee concluded that the best path forward for Surgery Partners and its stockholders is to continue operating as an independent publicly traded company." The company’s revenue growth supports this confidence, showing a robust 13.5% increase in the last twelve months. Get deeper insights into Surgery Partners’ growth potential with InvestingPro, which offers exclusive analysis and 6 additional ProTips for informed investment decisions.

Eric Evans, CEO of Surgery Partners, reaffirmed the company’s full-year 2025 guidance, projecting revenues between $3.30 billion and $3.45 billion, and Adjusted EBITDA between $555 million and $565 million. This guidance aligns with analysts’ positive outlook, as reflected in their consensus recommendation of "Buy" and a potential upside of 45% from current trading levels.

"Our strong first quarter performance gives us even more confidence in our ability to achieve our full-year 2025 revenue and Adjusted EBITDA guidance," Evans stated.

Bain Capital Partners Andrew Kaplan and Devin O’Reilly commented: "While we were not able to agree to terms of a transaction, we remain tremendously optimistic about the business, leadership team, and growth strategy of Surgery Partners."

Surgery Partners plans to host an Investor Day in the second half of 2025 to present its strategy, industry outlook, and plans for portfolio performance and operational efficiencies.

The company, headquartered in Brentwood, Tennessee, operates more than 200 locations across 30 states, including ambulatory surgery centers and surgical hospitals.

This article is based on a press release statement from Surgery Partners.

In other recent news, Surgery Partners, Inc. has concluded discussions with Bain Capital regarding a potential acquisition, deciding to remain an independent public company. The company reaffirmed its full-year 2025 guidance, projecting revenues between $3.30 billion and $3.45 billion and Adjusted EBITDA of $555 million to $565 million. Surgery Partners recently held its annual meeting where stockholders approved several key proposals, including the re-election of Class I directors and the 2025 Omnibus Incentive Plan. UBS analysts maintained a Buy rating for Surgery Partners, with a price target of $34.00, amid ongoing discussions about the potential sale of AMSURG. Cantor Fitzgerald also maintained an Overweight rating, highlighting the company’s stable trends and potential undervaluation. Meanwhile, KeyBanc Capital Markets kept its Sector Weight rating, noting the company’s modest EBITDA outperformance and robust same-store revenue growth in the first quarter. The firm’s management anticipates these trends to normalize throughout 2025. Surgery Partners’ strategic moves and the unfolding situation with Bain’s acquisition proposal remain significant points of interest for investors.

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