Investment Managers TowerBrook Capital Partners and Clayton, Dubilier & Rice (CD&R) Buy Health Technology R1 RCM for $8.9 Billion Representing 29% Premium to Unaffected Closing Price on 23rd February 2024, First Announcement of Non-Binding Acquisition Proposal in 2024 February, TowerBrook Currently Owns 36% of R1 RCM, Founded as Accretive Health in 2003 & Renamed as R1 RCM in 2017
7th August 2024 | Hong Kong
Investment managers TowerBrook Capital Partners and Clayton, Dubilier & Rice (CD&R) have announced to buy health technology R1 RCM for $8.9 billion, representing 29% premium to unaffected closing price on 23rd February 2024. The first announcement of the non-binding acquisition proposal was made in 2024 February. TowerBrook currently owns 36% of R1 RCM, which was founded as Accretive Health in 2003 & renamed as R1 RCM in 2017. Announcement (1/8/24): “R1 RCM Inc. (NASDAQ: RCM) (“R1” or the “Company”), a leading provider of technology-driven solutions that transform the patient experience and financial performance of healthcare providers, today announced that it has entered into a definitive agreement to be acquired by investment funds affiliated with TowerBrook Capital Partners and Clayton, Dubilier & Rice (“CD&R”), in an all-cash transaction with an enterprise value of approximately $8.9 billion. An investment vehicle controlled by TowerBrook is currently the beneficial owner of approximately 36% of the Company’s outstanding shares of common stock, including the warrant held by TowerBrook. Under the terms of the agreement, TowerBrook and CD&R will acquire all the outstanding common stock that TowerBrook does not currently own for $14.30 per share. The consideration of $14.30 per share in common stock to R1 stockholders represents a premium of approximately 29% to the Company’s unaffected closing price on February 23, 2024, the last full trading day before New Mountain Capital publicly disclosed its initial non-binding acquisition proposal on its Schedule 13D. The transaction has been unanimously approved by a special committee of the R1 Board of Directors comprised solely of independent directors (the “Special Committee”), which, as previously announced on March 11, 2024, was formed to evaluate strategic alternatives. Transaction negotiations were led by the Special Committee, advised by independent legal and financial advisors, and following the recommendation of the Special Committee, R1’s Board approved the transaction.”
“ Investment Managers TowerBrook Capital Partners and Clayton, Dubilier & Rice (CD&R) Buy Health Technology R1 RCM for $8.9 Billion Representing 29% Premium to Unaffected Closing Price on 23rd February 2024, First Announcement of Non-Binding Acquisition Proposal in 2024 February, TowerBrook Currently Owns 36% of R1 RCM, Founded as Accretive Health in 2003 & Renamed as R1 RCM in 2017 “
R1 RCM – R1 is a leading provider of technology-driven solutions that transform the financial performance and patient experience for health systems, hospitals, and physician groups. R1’s proven and scalable operating models seamlessly complement a healthcare organization’s infrastructure, quickly driving sustainable improvements to net patient revenue and cash flows while driving revenue yield, reducing operating costs, and enhancing the patient experience.
TowerBrook – TowerBrook Capital Partners is a purpose-driven, transatlantic investment management firm that has raised in excess of $23 billion to date. As a disciplined investor with a commitment to fundamental value, TowerBrook seeks to deliver superior, risk-adjusted returns to investors on a consistent basis, guided by TowerBrook Responsible Ownership™ principles which are central to the firm’s value creation strategy. TowerBrook partners with talented, experienced managers and senior advisors who share the firm’s values and support its investment objectives, providing capital and resources to transform the capabilities and prospects of the businesses in which it invests, driving better outcomes for all stakeholders. TowerBrook takes an entrepreneurial, multinational, single-team approach and since inception in 2001 has invested in more than 90 companies on both sides of the Atlantic. TowerBrook is the first mainstream private equity firm to be certified as a B Corporation, demonstrating leadership in its commitment to environmental, social and governance (ESG) standards and responsible business practices.
CD&R (Clayton, Dubilier & Rice) – Founded in 1978, CD&R is a leading private investment firm with a strategy of generating strong investment returns by building more robust and sustainable businesses through the combination of skilled investment experience and deep operating capabilities. In partnership with the management teams of its portfolio companies, CD&R takes a long-term view of value creation and emphasizes positive stewardship and impact. The firm invests in businesses that span a broad range of industries, including industrial, healthcare, consumer, technology and financial services end markets. CD&R is privately owned by its partners and has offices in New York and London.
Investment Managers TowerBrook Capital Partners and Clayton, Dubilier & Rice (CD&R) Buy Health Technology R1 RCM for $8.9 Billion Representing 29% Premium to Unaffected Closing Price on 23rd February 2024, First Announcement of Non-Binding Acquisition Proposal in 2024 February, TowerBrook Currently Owns 36% of R1 RCM, Founded as Accretive Health in 2003 & Renamed as R1 RCM in 2017
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