Team Health Jumps on Report of Private Equity Firm Talks

Updated on

Team Health Holdings Inc. gained the most in more than seven months after a report in the Wall Street Journal that the health-care staffing company has discussed selling itself to a private equity firm.

The Wall Street Journal reported Tuesday that Team Health is in talks with Blackstone Group LP and Bain Capital, citing people familiar with the matter, and that it could reach a deal to go private this month. The shares spiked 16 percent to $38.20 on Tuesday, the biggest one-day gain since Feb. 25.

Bain Capital held talks with the company, but the discussions concluded without an agreement, according to a person familiar with the matter. Blackstone is looking at Team Health, though talks are at an early stage, said another person familiar with the matter.

Representatives for Bain and Blackstone declined to comment. Pat Ball, a spokeswoman for Team Health, declined to comment.

Team Health provides doctors and other health workers for hospitals, and had a market valuation of $2.83 billion after Tuesday’s gain. The company had revenue of $3.6 billion last year.

Since November, when Team Health turned away the overtures of AmSurg Corp., the shares are down 43 percent, excluding Tuesday’s move. AmSurg had offered $69.32 a share in cash and stock for Team Health, which valued the company at $7.6 billion, including debt. AmSurg pulled the offer after Team Health declined to enter talks.

(Updates with Team Health no comment in fourth paragraph.)
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