Tenet Healthcare and its subsidiary United Surgical Partners International (USPI), agreed to acquire SurgCenter Development (SCD). Under the terms of the agreement, Tenet/USPI will acquire SCD’s ownership interests in 92 ambulatory surgery centers and other related ambulatory support services.
USPI and SCD’s principals will also enter into a five-year partnership and development agreement designed to provide continuity and support for SCD’s facilities and physician partners over the coming years. Going forward, USPI also has the exclusive option to partner with SCD on de novo development projects over the life of the agreement.
Tenet/USPI will acquire SCD’s ownership interests in 92 ASCs and related ambulatory support services for approximately $1.2 billion. SCD owns a minority interest of approximately 39 percent on average in 86 of the ASCs and a majority interest of approximately 55 percent on average in six of the ASCs.
Tenet plans to finance the transaction through the issuance of first-lien secured notes. The transaction is expected to close in the fourth quarter.
The transaction follows USPI’s successful acquisition of 67 SCD centers since 2009. Read more.
