EC Surgery Partners IPO Appears Well Constructed

Surgery Partners Inc. (NASDAQ: SGRY) expects to raise $250 million in its upcoming IPO. Based in Nashville, Tennessee, Surgery Partners operates surgical facilities in the United States together with its subsidiaries.

SGRY will offer 14.285 million shares at an expected price range of $23 to $26. If the underwriters price the IPO at the midpoint of that range, SGRY will have a market capitalization of $1.18 billion.

We previewed the Surgery Partners IPO on our IPO Insights platform last week.

SGRY filed for the IPO on August 17, 2015.

Lead Underwriters: BofA Merrill Lynch, Goldman Sachs, and Jeffries LLC

Underwriters: Citigroup Global Markets, Credit Suisse Securities, Morgan Stanley, Raymond James, RBC Capital Markets, and Stifel Nicolaus & Co.

Business Summary: Operator of Surgical Facilities in the United States

Surgery Partners operates a network of surgical facilities throughout the United States together with its subsidiaries. The company operates through its Ancillary Services, Surgical Facility Services and Optical Services divisions. Its surgical facilities include surgical hospitals and ambulatory surgery centers that offer non-emergency surgical procedures across a variety of specialties, such as general surgery, gastrointestinal, orthopedics, ophthalmology, pain management, cardiology, obstetrics/gynecology, podiatry, plastic surgery, urology, neurology and ENT. In addition, the surgical hospitals offer acute care services, including laboratory, diagnostic, obstetrics, pharmacy, oncology, wound care and physical therapy. Its ancillary services include diagnostic laboratory, urgent care facilities, multi-specialty physician practices, anesthesia services and specialty pharmacy services. The company’s optical division operates an optical laboratory that produces eye wear.

Through August 2015, Surgery Partners owned and operated over 100 surgical facilities including 94 ambulatory surgery centers and 5 surgical hospitals in 28 states. On a pro forma basis, nearly 4,000 physicians provided services through Surgery Partners in 2014, and through June 2015, approximately 70 percent of its facilities were multi-specialty focused.