AmSurg to Buy National Surgical Care for $173.5M
Nashville Based AmSurg Corp. announced Thursday afternoon that it would buy National Surgical Care in a $173.5 million cash deal.
NSC, based in Dallas, owns 18 ambulatory surgery centers in nine states, including 16 multi-specialty centers and two centers that specialize in gastroenterology procedures, which combined performed more 100,000 cases in 2010.
AmSurg President/CEO Christopher Holden said in a media release that the acquisition would "complement and expand our existing footprint."
"Through this transaction, we will increase our multi-specialty ASCs to a total of 43, based on year-end 2010 numbers, making AmSurg's network of majority-owned multi-specialty centers one of the largest among ASC companies in the country, in addition to our leading positions in the single surgical specialty markets for GI ASCs and ophthalmology ASCs," Holden said. "This strategic acquisition diversifies our portfolio and advances our vision of becoming a global leader in ambulatory healthcare services."
NSC's consolidated revenues in 2010 were $124.5 million and its adjusted EBITDA was $21.5 million. AmSurg will fund the transaction with cash and loans and has exercised the accordion feature on its revolving credit facility, allowing it to borrow up to $450 million from $375 million previously. Pending regulatory approval, the deal is expected to be finalized by the end of June, AmSurg said.
Sami S. Abbasi, chairman/CEO of NSC, said in the joint media release that the two healthcare companies share a "physician-centric culture and commitment to excellence."
"Our mission has always been to be the surgical provider of choice in our communities, with a culture that attracts the best possible people and that promotes learning, continuous improvement and growth," Abbasi said. "We are confident that our agreement to join AmSurg represents the right opportunity to carry this mission forward successfully."
Holden said AmSurg would continue with its ongoing plan to add 18 to 20 new centers in addition to those acquired in the NSC deal.