Agiliti Set to Go Private in $2.5B Deal By THL Partners

Agiliti is withdrawing from the public market, a move that comes less than three years after the company made its debut on the New York Stock Exchange within the context of an initial public offering.

According to a statement released on Monday, the medical equipment management firm has reached an agreement with its main shareholder, Thomas H. Lee Partners, often known as THL, to undergo a take-private transaction.

In accordance with the unanimous proposal of a dedicated special panel within the board, the transaction has been authorized by the board of directors of Agiliti as well as THL. It is anticipated that it will be shut down at some point during the first half of this year.

According to the terms of the agreement, the private equity company will make a payment of $10 for each share of Agiliti’s stock not currently held by THL or in the possession of select management shareholders. This reflects a premium of almost 40% above Agiliti’s mean trading price over the past several months, as stated in the announcement; for instance, it was hovering around $7.50 per share during the course of the previous week.

“Agiliti serves a critical role in sustaining our national healthcare infrastructure, and our dedicated team has led the way to our substantial growth and evolution over the last decade,” stated CEO Tom Leonard.

Leonard expressed satisfaction regarding the extension of their five-year collaboration with THL, highlighting that the agreement offers immediate benefits and liquidity to their shareholders. He added that this deal alleviates certain concerns that had previously constrained their performance in the public market following their IPO.

Agiliti will withdraw from the New York Stock Exchange once the transaction has been finalized. Despite the fact that the firm has stated that it intends to continue filing its full-year 2023 report on finances in the weeks ahead, it has decided to cancel the typical conference call to discuss the results. The call was originally planned to take place on March 5.

The buyout places Agiliti’s total valuation at $2.5 billion, which is a slight decrease from the $2.6 billion valuation that was believed to be held by the company at the time of its IPO.

During the height of the COVID-19 epidemic, Agiliti’s position as a provider of medical supplies and services became increasingly significant, which led to the company’s decision to launch an initial public offering. More than $1 billion in revenue was brought in by the business in 2021, a 34% rise from the previous year’s total. It surpassed those earnings in 2022, with 8% growth pushing its sales to $1.12 billion, and as of its third-quarter 2023 results, it was projected to surpass its total once again, with revenue expected to be between $1.16 and $1.19 billion. 

Meanwhile, throughout that time period, the company had some exchanges in the C-suite. Leonard, who had assumed the job of CEO in 2015, resigned from his position in March 2023 to retire, but he later returned to the role in October.

The post Agiliti Set to Go Private in $2.5B Deal By THL Partners appeared first on LifeSci Voice.