GI Alliance Announces Physician-Led Buyout Valuing the Company at $2.2 Billion
August 19 2022 - 8:00AM
GI Alliance (the “Company”), the nation’s largest gastroenterology
practice, has announced its physician owners, which today own
approximately 70% of the Company, have agreed to repurchase the
minority equity stake held by Waud Capital Partners (“WCP”). The
transaction values GI Alliance at $2.2 billion and is being led by
funds managed by affiliates of Apollo (NYSE: APO), within its
Hybrid Value strategy.
The physician-led buyout underscores the
confidence the physician owners have in GI Alliance’s continued
growth and its commitment to the highest quality of patient care.
The non-control investment from Apollo-managed funds facilitates
the physician-led buyout, providing GI Alliance with a strategic
partner and ongoing capital and capital markets support as the
Company continues to execute on its growth strategy.
Dr. Jim Weber, CEO of GI Alliance, said, “As a
patient-first, physician-led organization that prides itself on
delivering superior care, GI Alliance plays a critical role in
improving outcomes for patients nationally. With this transaction,
our gastroenterologists will increase their ownership in a Company
that they help to build each day, while benefitting from the Apollo
Hybrid Value team’s strategic advice and capital as a long-term
financing partner. We are incredibly excited about this next
chapter, and we want to thank the WCP team for their many
contributions to our success to date.”
Apollo Partner and Head of U.S. Hybrid Value
Jason Scheir said, “GI Alliance is the leading gastroenterology
platform in the U.S. and is led by a best-in-class management team
with a proven track record of growth. We are proud to partner with
the Company and structure a value-add, non-control investment
through our Hybrid Value franchise that furthers the objective of
physician ownership while providing ongoing strategic and capital
support for future growth.”
Upon the closing of the transaction, Scheir and
Apollo Principal Anton Finucane-Courreges will join the GI Alliance
Board of Directors.
The transaction is subject to the satisfaction
of customary closing conditions and is expected to close in Q3
2022.
Latham & Watkins LLP and Houlihan Lokey
acted as legal counsel and financial advisor, respectively, to the
Apollo Funds. Jefferies acted as lead financial advisor to GI
Alliance and its shareholders. Greenhill & Co. acted as lead
financial advisor to management and physician owners of GI
Alliance. Kirkland & Ellis LLP and Katten Muchin Rosenman LLP
served as legal advisors to WCP and GI Alliance, respectively.
Blackstone & Ally led the lender group providing committed debt
financing for the transaction.
About GI AllianceGI Alliance is
a physician-led and majority physician-owned GI practice with 688
independent gastroenterologists operating in Texas, Arkansas,
Arizona, Colorado, Florida, Illinois, Indiana, Kansas, Louisiana,
Mississippi, Missouri, Oklahoma, Utah, and Washington. GI Alliance
practices focus on providing the highest-quality care to their
patients. In addition to providing operational support for
practices, GI Alliance is working to unite gastroenterologists
nationwide by aligning interests and improving patient care.
About ApolloApollo is a
high-growth, global alternative asset manager. In our asset
management business, we seek to provide our clients excess return
at every point along the risk-reward spectrum from investment grade
to private equity with a focus on three investing strategies:
yield, hybrid, and equity. For more than three decades, our
investing expertise across our fully integrated platform has served
the financial return needs of our clients and provided businesses
with innovative capital solutions for growth. Through Athene, our
retirement services business, we specialize in helping clients
achieve financial security by providing a suite of retirement
savings products and acting as a solutions provider to
institutions. Our patient, creative, and knowledgeable approach to
investing aligns our clients, businesses we invest in, our
employees, and the communities we impact, to expand opportunity and
achieve positive outcomes. As of June 30, 2022, Apollo had
approximately $515 billion of assets under management. To learn
more, please visit www.apollo.com.
GI Alliance ContactDee Dee
BrooksHead of Communications(214)
998-3434DeeDee.Brooks@GIAlliance.com
Apollo ContactsNoah GunnGlobal
Head of Investor RelationsApollo Global Management, Inc.(212)
822-0540IR@Apollo.com
Joanna RoseGlobal Head of Corporate
CommunicationsApollo Global Management, Inc.(212)
822-0491Communications@Apollo.com
Apollo Global Management (NYSE:APO)
Historical Stock Chart
From Mar 2024 to Apr 2024
Apollo Global Management (NYSE:APO)
Historical Stock Chart
From Apr 2023 to Apr 2024