PE firm Clayton, Dubilier & Rice to buy Emergency Medical Services for $3 billion
14 February 2011
Private equity firm Clayton, Dubilier & Rice (CD&R) today said that it would buy healthcare and physician services company Emergency Medical Services Corp (EMSC) for $3 billion.
Colorado-based EMSC is a leading provider of emergency medical services in the US. EMSC operates two business segments, American Medical Response (AMR), the company's healthcare transportation services segment, and EmCare Holdings, the company's outsourced facility-based physician services segment.
AMR is the leading provider of ambulance services in the United States. EmCare is a leading provider of outsourced physician services to healthcare facilities. In 2010, EMSC provided services in more than 2,200 communities and 14 million patients nationwide.
In recent years, EMSC has benefited from strong market trends driven by the aging population, primary care physician shortages and increased outsourcing of health services.
Founded in 1978, Clayton, Dubilier & Rice has managed the investment of approximately $15 billion in 48 US and European businesses representing a broad range of industries with an aggregate transaction value of approximately $80 billion.
Under the terms of the agreement EMSC stockholders would receive, at the closing of the transaction, $64.00 in cash for each share of EMSC Class A common stock and Class B common stock and each LP Exchangeable Unit.
''EMSC has demonstrated the ability to consistently provide superior patient care and service which is demonstrated by its long-term customer relationships,'' said CD&R partner Kenneth Giuriceo. ''We look forward to working with the management team to enhance the Company's competitive advantages and build long-term value for its customers, employees and investors.''
''EMSC is an exceptionally high quality and successful company with an outstanding management team and world-class workforce led by Bill Sanger,'' said Richard Schnall, a partner at CD&R. ''The company is poised for continued strong growth due to its leading market position, operational effectiveness and the value it brings to its customer base.''