KKR Extends Health Flurry With $2.4 Billion Ambulance Deal

Updated on
  • American Medical Response to be added to medical-transport arm
  • KKR recently made deals for pharmacy company, health website

KKR & Co. agreed to a deal that will add more heft to an ambulance business it owns, as the private-equity firm continues to bulk up its health-care holdings.

The New York-based buyout firm said that it will buy American Medical Response from Envision Healthcare Corp. for $2.4 billion in cash. KKR will combine American Medical with Air Medical Group Holdings, a company it bought in 2015 that operates medical-transport and evacuation aircraft.

The combined businesses will transport more than 5 million patients a year through air and ground ambulances in 46 U.S. states and Washington D.C., the companies said. The deal is expected to close in the fourth quarter pending the approval of regulators, they said in a statement on Tuesday.

Shares of Nashville, Tennessee-based Envision climbed about 5.7 percent to $58.17 before the start of regular trading.

KKR has been snapping up health-care assets this year. Earlier this month, it teamed up with Walgreens Boots Alliance Inc. in an agreement to purchase PharMerica Corp. for $1.4 billion. In July, the firm agreed to buy WebMD Health Corp. for about $2.8 billion and bought majority control of nutritional-supplements maker Nature’s Bounty Co. for an undisclosed sum.

KKR is funding the American Medical deal through its North America XI Fund and Koch Equity Development LLC, an investment subsidiary of Koch Industries Inc. Air Medical was advised by Barclays Plc, and Guggenheim Securities advised Envision.

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