Surgery Center Holdings' acquisition of local competitor Symbion has closed, but the Chicago company will be required by the Federal Trade Commission to divest an Florida surgery center.
The settlement to sell Blue Springs Surgery Center, which avoids further litigation for the parties, is representative of continued scrutiny of health care companies by antitrust agencies, says Bass Berry & Sims. The $792 million acquisition of Symbion, formerly based out of Green Hills, closed earlier this month.
From the FTC complaint:
The merger would combine ownership of the only two multi-speciality ambulatory surgery centers in Orange City, Florida...The likely ultimate effect of the merger would be that prices of outpatient surgical services sold to commercial health plans and commercially insured patents would rise above competitive levels, and there would be a decrease in the quality or availability of outpatient surgical services in the area.
Surgery Center Holdings has wrapped up its $792 million acquisition of locally based competitor Symbion. The combined company will generate total revenues of more than $900 million from facilities in 26 states. As part of the deal, CEO Richard Francis and President and COO Cliff Adlerz have resigned from their positions, starting the clock on their noncompete and nonsolicitation agreements.
Reuters says private-equity firm Crestview Partners is ready to cash in on its six-year-old investment in local ambulatory surgery center chain Symbion. The Burton Hills-based company could fetch as much as $800 million, sources say, which would be about 10 times its expected 2013 EBITDA. Through the first nine months of this year, Symbion posted operating income of $54.4 million, down 13 percent from a year ago.
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