Plus   Neg

Envision Healthcare To Sell American Medical Response To KKR For $2.4 Bln Cash

Envision Healthcare Corp. (EVHC), a provider of physician-led services and post-acute care, and ambulatory surgery services, announced Tuesday that it has agreed to sell its medical transportation subsidiary, American Medical Response or AMR to KKR & Co. L.P (KKR) in $2.4 billion cash deal.

Under the deal, AMGH will be combined with KKR's portfolio company Air Medical Group Holdings or AMGH to create a new integrated medical transportation company. It will be capable to serve patients across multiple transport modalities in the patient's time of need.

The pending acquisition is subject to regulatory approval and customary closing conditions, including clearance under the Hart-Scott-Rodino Antitrust Improvements Act, and is expected to close in the fourth quarter of 2017.

The combined company is expected to transport more than five million patients per year through a fleet of air and ground ambulances across 46 states and the District of Columbia. The combination will bring together 27,000 AMR team members with 6,600 AMGH team members.

Upon completion of the transaction, the combined company will adopt a new name that reflects the unique capabilities of the two organizations. Following the closing of the transaction, AMR and AMGH will continue to support operations from two key leadership locations in Greenwood Village, CO, and Lewisville, TX.

The new company's two divisions will continue to be led by strong leaders with extensive experience running medical transportation organizations.

Randel Owen, Envision's President of Ambulatory Services, will assume the role of President and Chief Executive Officer of the new combined company.

Also, Michael Preissler, Chief Financial Officer at AMGH, and Thomas Cook, General Counsel at AMGH, will serve in the same roles for the combined company.

Fred Buttrell will continue as President and Chief Executive Officer of the Air Medical division. Edward Van Horne will continue as President and Chief Executive Officer of the AMR division.

Christopher Holden, Envision's President and Chief Executive Officer, said, "The Envision leadership team conducted a robust process to review strategic alternatives for AMR. The agreement delivers on our commitment to continue the proud tradition of AMR and enables Envision to focus on its physician-centric strategy and ongoing services, including facility-based provider services, post-acute care and ambulatory surgery."

by RTTNews Staff Writer

For comments and feedback: editorial@rttnews.com

Follow RTT