Potential $6 Billion Valuation Sends Surgery Partners Stock Up 20.6%
Key Facts
Surgery Partners shares rose 20.6% to $19.00 in premarket trading on October 26 after a Financial Times report, carried by Benzinga, said Bon Secours Mercy Health was in advanced talks to buy a majority stake in the company. The report valued the potential deal at about $6 billion, in a move reflecting investors’ reaction to the possibility of the buyer joining the company’s ownership structure. The deal remains at the reported talks stage, and no final agreement has been announced. The move came in premarket trading, and available data do not include a trading volume figure. The stock closed at $15.75 on October 23, according to EL7 data.
The Financial Times report said the valuation of about $6 billion includes debt, and that the proposed deal concerns a majority stake rather than a purchase of the entire company. Reuters cited an estimate of a potential price of about $20 per share, equivalent to a 25.8% premium over the October 23 close of $15.90, which was the October 22 session close, according to EL7 data. That differs from the stock’s premarket move on October 26, when it reached $19.00. The per-share price estimate provides an indication separate from the deal’s overall valuation, which includes debt. The $6 billion figure therefore does not represent the value of shareholders’ equity alone.
According to the report, Bain Capital is expected to retain its stake of about 40% in Surgery Partners under the proposed structure. This gives the potential deal a different character from a full acquisition in which the existing shareholder exits, as the talks concern the purchase of a majority stake while Bain remains an investor. Bain has been invested in the company since 2017, according to the Financial Times. In an earlier development, Surgery Partners rejected a Bain offer in June 2025 to take the company private, saying it had been unable to agree on terms with the investment group. That episode places the current talks within a prior record of attempts to change the company’s ownership.
The news comes as the company recorded limited revenue growth in the second quarter of 2026, with revenue rising 2.7% to $848.9 million, compared with $826.2 million in the corresponding period of 2025. Same-facility revenue increased 5.0%, but adjusted earnings before interest, taxes, depreciation and amortization fell to $125.2 million from $129.0 million. The results showed a net loss attributable to Surgery Partners of $15.0 million for the quarter. Chief Executive Eric Evans said in an earlier disclosure that demand for the company’s services remained strong and that it was optimistic about the structural factors supporting long-term growth in the surgical-center market. These indicators present a mixed picture of revenue growth alongside continued losses and lower adjusted earnings compared with the corresponding period.
The company’s total debt stood at $3,751.2 million on June 30, 2026, while its net debt to adjusted earnings under the credit agreement definition reached about 4.4 times at the end of the second quarter. Surgery Partners reaffirmed its fiscal 2026 revenue guidance in a range of $3.35 billion to $3.45 billion. It also maintained its forecast for adjusted earnings before interest, taxes, depreciation and amortization of at least $530 million. The company said its guidance excludes the pending divestiture it had disclosed. Debt remains central to understanding the reported valuation because it is included in the potential deal value of about $6 billion.
The Financial Times report said an announcement of the deal could come as early as Monday, October 26, a possible timing cited in the report and not confirmation by either party that an agreement had been completed. Reuters reported that Surgery Partners and Bon Secours Mercy Health did not immediately respond to its requests for comment outside regular business hours. As for when investors can next assess the company’s performance, MarketBeat expects third-quarter results on November 9, 2026, before the market opens, with an investor call at 8:30 a.m. Eastern Time. The results date remains an estimate and has not been confirmed by the company. The results would give investors an opportunity to track revenue and earnings after the news about the talks.