Surgery Partners Announces Closing Date for National Surgical Healthcare Transaction

Combination creates leading independent surgery company with strong musculoskeletal programs

Bain Capital Private Equity to complete acquisition of H.I.G. Capital’s stake in Surgery Partners with the NSH close

NASHVILLE, Tenn., Aug. 16, 2017 -- Surgery Partners, Inc. (NASDAQ:SGRY) ("Surgery Partners"), a leading healthcare services company, is pleased to announce that as of today, certain regulatory steps in the closing process have been completed and its previously announced acquisition of National Surgical Healthcare (“NSH”) is scheduled to  close on August 31, 2017.   All the financing for the transaction is in place, including a Surgery Partners’ recently completed offering of $370 million in 6.750% senior unsecured notes due 2025, a new  $1.29 billion term loan and a new preferred security purchased by Bain Capital Private Equity.  Simultaneously with this transaction, Bain Capital Private Equity, as previously announced, will complete its purchase of H.I.G. Capital’s stake in Surgery Partners.

On May 9, 2017, Surgery Partners announced a definitive merger agreement under which Surgery Partners will acquire NSH from Irving Place Capital for approximately $760 million.  Funding for Surgery Partners’ acquisition of NSH was provided in part by Bain Capital Private Equity, a leading global private investment firm.  In conjunction with this transaction, Bain Capital Private Equity will acquire H.I.G. Capital’s existing equity stake in Surgery Partners at $19 per share.

The transaction builds upon each company’s physician-centric services model.  It combines two best in class organizations, creating a diversified inpatient and outpatient surgical provider with a portfolio of 125 surgical facilities, 58 physician practice locations and complementary ancillary services.  The combined business will be one of the leading independent surgical facilities operators in the country, with a strong presence in musculoskeletal programs, including orthopedics, pain and spine.  The combined company will operate facilities in 32 states with a network of over 5,000 physicians, creating an attractive, diversified surgical provider with pro forma revenues of more than $1.7 billion.

Bain Capital Private Equity is a long-term investor and has a history of successful investments across a broad range of healthcare sectors including service providers, facilities, life sciences, devices, and distribution.  The firm’s experience owning industry leading facilities-based healthcare businesses includes HCA Healthcare, Acadia Healthcare Company, Air Medical Group Holdings, Grupo NotreDame Intermedica and Aveanna Healthcare, among others.

About Surgery Partners
Headquartered in Nashville, Tennessee, Surgery Partners is a leading healthcare services company with a differentiated outpatient delivery model focused on providing high quality, cost effective solutions for surgical and related ancillary care in support of both patients and physicians.  Founded in 2004, Surgery Partners is one of the largest and fastest growing surgical services businesses in the country, with more than 150 locations in 29 states, including ambulatory surgical facilities, surgical hospitals, a diagnostic laboratory, multi-specialty physician practices and urgent care facilities.

About National Surgical Healthcare
NSH is an innovative  healthcare  partner  that  empowers  physicians  to  thrive  in  a  changing marketplace.  NSH owns and operates 21 surgical facilities, specializing in orthopedic surgery, spine and back, pain management, and neurosurgery.  For information about NSH, visit the company's website at www.nshinc.com.

About Bain Capital Private Equity
Bain Capital Private Equity (www.baincapitalprivateequity.com) has partnered closely with management teams to provide the strategic resources that build great companies and help them thrive since our founding in 1984.  Our team of more than 220 investment professionals creates value for our portfolio companies through our global platform and depth of expertise in key vertical industries, including industrials, consumer/retail, financial and business services, healthcare, and technology, media and telecommunications.  In addition to private equity, Bain Capital invests across asset classes including credit, public equity and venture capital, and leverages the firm’s shared platform to capture opportunities in strategic areas of focus.

Contacts:
Surgery Partners, Inc.
Teresa Sparks, Chief Financial Officer
(615) 234-8940
[email protected]