(Bloomberg) -- Surgery Partners Inc., which is backed by private equity firm Bain Capital, is exploring options including a potential sale, according to people familiar with the matter.
The Brentwood, Tennessee-based operator of surgical facilities is working with a financial adviser to gauge buyer interest, the people said, asking not to be identified discussing confidential information.
Buyout firm Bain Capital is the company’s largest shareholder with a 39% stake, data compiled by Bloomberg show. Surgery Partners could appeal to strategic buyers or private equity firms, the people said.
Shares of Surgery Partners jumped as much as 17% after the close of regular trading Thursday in New York. The stock had lost about a third of its value over the past 12 months, giving the company a market value of $3.7 billion.
Deliberations are in the early stages and the company could opt against pursuing a deal, the people said. A representative for Surgery Partners didn’t immediately respond to a request for comment. A spokesperson for Bain declined to comment.
Founded in 2004, Surgery Partners operates more than 180 locations — including surgery centers, surgical hospitals, physician practices and urgent care facilities — across the US. The company went public in in 2015 and merged with National Surgical Healthcare in 2017, at which point Bain acquired HIG Capital’s stake in Surgery Partners.
In May, Surgery Partners said it expected to generate at least $3.05 billion in annual revenue and adjusted earnings before interest, taxes, depreciation and amortization of at least $505 million.
(Updates with share gain in fourth paragraph)
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