KKR Will Buy Envision Healthcare for $5.57 Billion Plus Debt

KKR is already familiar with Envision. The asset firm's portfolio company, Air Medical, acquired Envision's medical transport subsidiary American Medical Response in a $2.4 billion deal announced last year.

Envision shares were up 2.7% to $44.80 at 9:18 a.m. in New York, before the markets opened. The company said the KKR deal values Envision at 10.9 times its adjusted earnings before interest, taxes, depreciation and amortization for the trailing 12 months.

Health services assets have become hot targets for buyers.

Last year, KKR finished raising money for a $1.45 billion health care fund dedicated to growth stage companies. Health insurance and services giant UnitedHealth has acquired a string of medical practices, and drugstore chain CVS Health Corp. is buying insurer Aetna Inc., with the goal of making CVS's retail locations hubs for health services. In 2016 Blackstone ended its three-year public-to-private buyout drought with an agreement to buy Team Health Holdings Inc, another health care staffing company.

"Envision is a leading provider of physician-led services in a health care system in which physician-patient interactions have a pronounced impact on nearly all health care decisions," Jim Momtazee, KKR's head of health care investing, said in the statement. "We are excited to partner with the outstanding team."

— Read UnitedHealth Leaves You Off Its Emphasis List, on ThinkAdvisor.

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