Surgery Partners Completes Sale of Ownership Interests in Idaho Falls Facilities to Intermountain Health; Updates Guidance to Include Impact of the Transaction
Surgery Partners has completed the sale of its ownership interests in its Idaho Falls facilities — Mountain View Hospital and Idaho Falls Community Hospital — to Intermountain Health, receiving $797 million in gross proceeds and $587 million in net cash at closing. The transaction values the combined facilities at roughly $1.15 billion, about 7x their last-12-months adjusted EBITDA through June 30, 2026, and proceeds will primarily pay down debt, with credit-agreement leverage expected to improve 30bps from 4.4x at the end of Q2 2026.
Key figures
- Guidance
- FY2026 revenue $3.08B-$3.18B and Adjusted EBITDA at least $489M; pro forma excluding Idaho Falls for full-year 2026: revenue $2.60B-$2.67B and Adjusted EBITDA at least $414M
- Deal Value Usd
- 797000000
- Leverage q2 2026
- 4.4x
- Gross proceeds usd
- 797000000
- Divested facilities
- ["Mountain View Hospital","Idaho Falls Community Hospital"]
- Ebitda multiple ltm
- ~7x LTM adjusted EBITDA (through June 30, 2026)
- Leverage improvement
- 30bps
- Net cash proceeds usd
- 587000000
- Facility valuation usd
- 1150000000
- Distribution multiple 3yr
- ~17x average distributions over past three years
- Medicaid payor mix reduction
- 50%, to under 2% of revenue
AI analysis
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