Blog Coverage Blackstone to Acquire Team Health in Multi-Billion Deal

Upcoming AWS Coverage on ManpowerGroup Inc. Post-Earnings Results

LONDON, UK / ACCESSWIRE / November 1, 2016 / Active Wall St. blog coverage looks at the headline from Team Health Holdings, Inc. (NYSE: TMH) as the company announced that it has entered into a definitive agreement to be acquired by funds affiliated with The Blackstone L.P. (NYSE: BX), and certain co-investors in a transaction valued at approximately $6.1 billion. Blackstone will take the staffing company private once the deal is completed. Register with us now for your free membership and blog access at: http://www.activewallst.com/register/.

Team Health Holdings is anticipated to report earnings on November, 01st, 2016. One of Team Health Holdings’ competitors within the Staffing & Outsourcing Services space, ManpowerGroup Inc. (NYSE: MAN), reported its quarterly results on October 21st, 2016. AWS will be initiating a research report on ManpowerGroup in the coming days.

Today, AWS is promoting its blog coverage on TMH and BX; touching on MAN. Get all of our free blog coverage and more by clicking on the link below:

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The Agreement

Under terms of the agreement, which has been unanimously approved by Team Health’s Board of Directors, Blackstone offered to acquire all of the outstanding shares of Team Health’s common stock for $43.50 per share in cash. This represents a premium of approximately 33% over Team Health’s closing share price on October 3, 2016, the day before news that the company was considering a sale went public.

“We are pleased to reach this agreement with Blackstone, which maximizes value for all Team Health stockholders,” said Leif Murphy, President and Chief Executive Officer of Team Health.

Neil Simpkins, a Senior Managing Director at Blackstone, commented on the deal: “We are thrilled to have the opportunity to invest in Team Health and once again partner with such an experienced management team and high quality business. We look forward to supporting Team Health during the next phase of its development.”

The Consolidating Industry

The US physician services industry has been in a consolation phase to counter the increasing administrative costs from President Barack Obama’s Affordable Care Act and in order to provide broader array of services to hospitals. Team Health’s transaction with Blackstone comes after rival Amsurg Corp. (NASDAQ: AMSG), in November 2015, abandoned its $5 billion pursuit for Team Health. In June 2016, Amsurg agreed to merge with Envision Healthcare Holdings Inc. (NYSE: EVHC), in an all-stock transaction valued around $10 billion. Following its rejection of Amsurg’s proposal, Team Health acquired smaller peer IPC Healthcare Inc. in November 2015 for approximately $1.6 billion.

Go Shop Period

The merger agreement includes a “go-shop” period, during which Team Health and its Board of Directors may actively solicit, receive, evaluate, and potentially enter negotiations with parties that offer alternatives to make a decision with respect to any potential superior proposal.

The transaction, which is subject to the receipt of Team Health’s stockholder approval, regulatory approvals, and other customary closing conditions, is expected to close in Q1 FY17.

Quarterly Results Announcement

Team Health noted that, with the proposed transaction, it will not host a conference call to discuss financial results for Q3 2016. The Company expects to file its Quarterly Report on Form 10-Q for the quarter ended September 30, 2016, on or before November 7, 2016.

Stock Performance

On Monday, October 31, 2016, post the potential acquisition announcement, Team Health’s shares surged 16.44% from its previous closing price of $36.80, finishing the day at $42.85 which was near the acquisition price of $43.50. A total volume of 21.92 million shares exchanged hands by the close of the trading session. For the last month, the stock has soared 31.60%. Shares of the company have a PE ratio of 70.71 and currently have a market cap of $3.28 billion.

Blackstone’s stock price, on the other hand, was down 1.84%, closing the day at $25.03, with a total volume of 2.67 million shares. The stock has a dividend yield of 5.75% and is trading at a P/E of 63.21. Shares of the company current have a market cap of $29.45 billion.

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