M&A Deal Summary

Ridgemont Equity Partners, KKR and Bain Capital Private Equity Acquire HCA Healthcare

On November 17, 2006, private equity firms Ridgemont Equity Partners, KKR and Bain Capital Private Equity acquired healthcare services company HCA Healthcare for 33.0B USD

Acquisition Highlights
  • This is Ridgemont Equity Partners’ 5th, KKR’s 2nd and Bain Capital Private Equity’s 3rd transaction in the Healthcare Services sector.
  • This is Ridgemont Equity Partners’ , KKR’s 2nd and Bain Capital Private Equity’s largest (disclosed) transaction.
  • This is Ridgemont Equity Partners’ 54th, KKR’s 28th and Bain Capital Private Equity’s 40th transaction in the United States.
  • This is Ridgemont Equity Partners’ 3rd, KKR’s 1st and Bain Capital Private Equity’s 1st transaction in Tennessee.
Investment Fate
  • HCA Healthcare went public in 2011.

M&A Deal Summary

Date 2006-11-17
Target HCA Healthcare
Sector Healthcare Services
Buyer(s) Ridgemont Equity Partners
KKR
Bain Capital Private Equity
Deal Type Going Private
Deal Value 33.0B USD
Advisor(s) Bass, Berry & Sims (Legal)

Target

HCA Healthcare

Nashville, Tennessee, United States
HCA Healthcare is a national healthcare service provider. HCA operates general and acute care hospitals with a full range of services to accommodate such medical specialties as internal medicine, general surgery, cardiology, oncology, neurosurgery, orthopedics and obstetrics, as well as diagnostic and emergency services. Outpatient and ancillary health care services are provided by general, acute care hospitals, freestanding surgery centers, diagnostic centers, and rehabilitation facilities. HCA's psychiatric hospitals provide a full range of mental health care services through inpatient, partial hospitalization and outpatient settings. HCA Healthcare was formed in 1968 and is based in Nashville, Tennessee.

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Buyer(S) 3

Buyer

Ridgemont Equity Partners

Charlotte, North Carolina, United States

Investor Investor Investor Investor Investor


Category Private Equity Firm
Founded 1993
PE ASSETS 7.0B USD
Size Mega
Type Sector Agnostic
DESCRIPTION

Ridgemont Equity Partners is an independent private equity firm specializing in middle-market buy-outs, corporate divestitures, recapitalizations and growth capital investments. The Firm targets to invest in companies located in North America, preferably in US and Canada. REP looks to invest up to $500 million in companies with EBIDTA of $5 - $50 million. The Firm seeks to hold both majority and minority equity interest in portfolio companies. Specific areas of interest include basin industries and services, energy, healthcare, telecommunications, media and technology. Ridgemont Equity Partners is a spun-off of Banc of America Capital Investors (BACI). Ridgemont Equity Partners was formed in August 2010 and is based in Charlotte, North Carolina.


DEAL STATS #
Overall 62 of 133
Sector (Healthcare Services) 5 of 16
Type (Going Private) 5 of 9
State (Tennessee) 3 of 5
Country (United States) 54 of 118
Year (2006) 8 of 9
Size (of disclosed) 1 of 20
PREVIOUS DEAL
DATE TARGET DEAL TYPE VALUE
2006-11-16 Hertz

Estero, Florida, United States

Hertz operates car rental businesses through the Hertz, Dollar, Thrifty and Firefly brands. Hertz Global operates through corporate and franchisee locations and services the North American, European, Latin and South American, Asian, Australian, African, and Middle Eastern markets. In addition to its car rental business, Hertz provides fleet leasing and management services through its Donlen subsidiary. Hertz was originally established in 1918 and is based in Estero, Florida.

Sell -
FOLLOWING DEAL
DATE TARGET DEAL TYPE VALUE
2006-12-01 Republic Companies

Dallas, Texas, United States

Republic Companies, Inc. is an insurance company providing personal and commercial property and casualty insurance products to individuals and small to medium business primarily in Texas.

Sell -
Buyer

KKR

New York, New York, United States

Investor Investor Investor Investor Investor


Category Private Equity Firm
Founded 1976
PE ASSETS 510.0B USD
Size Mega
Type Sector Agnostic
DESCRIPTION
KKR's office in Menlo Park, California.
KKR's office in Menlo Park, California.

KKR is a global investment firm founded by Jerome Kohlberg, Henry Kravis, and George Roberts. The Firm is separated into several business segments including private markets, public markets, capital markets, and other principal activities. KKR's private equity practice invests in management buyouts, take privates, corporate divestitures, industry consolidations, and partnerships with family-owned companies. KKR will invest in a broad range of industries and companies and will consider businesses throughout North America, Europe, Asia, and Australia/New Zealand. Sectors of interest include chemicals, consumer products, energy and natural resources, financial services, healthcare, industrial, media/communications, retail, and technology. In addition to its traditional principal investment activity business, KKR also invests in infrastructure assets. KKR was formed in 1976 and is based in New York, New York.


DEAL STATS #
Overall 49 of 483
Sector (Healthcare Services) 2 of 16
Type (Going Private) 7 of 37
State (Tennessee) 1 of 6
Country (United States) 28 of 210
Year (2006) 11 of 13
Size (of disclosed) 2 of 104
PREVIOUS DEAL
DATE TARGET DEAL TYPE VALUE
2006-11-06 KION Group

Frankfurt, Germany

KION Group is a worldwide provider of forklifts, warehouse equipment and other industrial trucks. Its full spectrum of services includes industrial trucks, such as forklift trucks and warehouse trucks, as well as integrated automation technologies and software solutions for the optimization of supply chains—including all related services. KION Group was founded in 2006 and is based in Frankfurt, Germany.

Buy $4.0B
FOLLOWING DEAL
DATE TARGET DEAL TYPE VALUE
2006-11-20 Seven West Media

Sydney, Australia

Seven West Media is a media company with diversified presence in broadcast television, radio, newspaper publishing, magazine publishing and online. Seven West Media was founded in 1991 and is based in Perth, Australia.

Buy -
Buyer

Bain Capital Private Equity

Boston, Massachusetts, United States

Investor Investor Investor Investor Investor


Category Private Equity Firm
Founded 1984
PE ASSETS 44.2B USD
Size Mega
Type Sector Agnostic
DESCRIPTION

Bain Capital Private Equity (BCPE), is the private equity investment arm of alternative asset management firm, Bain Capital. BCPE targets leveraged buyout and growth capital transactions in a wide variety of industries including information technology, communications, media, healthcare, industrial/manufacturing, retail/consumer, and financial services. Bain Capital is based in Boston with additional offices in New York, London, Mumbai, Hong Kong, Shanghai, Tokyo, and Munich.


DEAL STATS #
Overall 54 of 236
Sector (Healthcare Services) 3 of 13
Type (Going Private) 6 of 24
State (Tennessee) 1 of 2
Country (United States) 40 of 124
Year (2006) 14 of 14
Size (of disclosed) 1 of 72
PREVIOUS DEAL
DATE TARGET DEAL TYPE VALUE
2006-11-16 iHeartMedia

San Antonio, Texas, United States

iHeartMedia is a diversified media and entertainment company with three reportable business segments, iHeartMedia, Americas outdoor advertising, and International outdoor advertising. iHeartMedia is based in San Antonio, Texas.

Buy $26.7B
FOLLOWING DEAL
DATE TARGET DEAL TYPE VALUE
2006-11-30 HMH

Boston, Massachusetts, United States

HMH is a learning technology company committed to delivering connected solutions that engage learners, empower educators and improve student outcomes. As a leading provider of K–12 core curriculum, supplemental and intervention solutions, and professional learning services, HMH partners with educators and school districts to uncover solutions that unlock students' potential and extend teachers' capabilities. HMH serves more than 50 million students and four million educators in 150 countries. HMH was founded in 1832 and is based in Boston, Massachusetts.

Sell $3.4B