MEDNAX Completes Sale of MEDNAX Radiology Solutions to Radiology Partners
December 16 2020 - 6:45AM
Business Wire
MEDNAX, Inc. (NYSE: MD), the national health solutions partner
specializing in prenatal, neonatal, and pediatric services, today
announced that it has completed the previously announced sale of
MEDNAX Radiology Solutions to Radiology Partners for total
consideration of $885 million. The Company received net proceeds,
after related transaction expenses and customary adjustments, of
approximately $865 million.
“This transaction marks an important milestone for MEDNAX, as we
are now wholly focused on providing high quality care to women,
newborns and children through our Pediatrix and Obstetrix medical
groups,” said Mark S. Ordan, Chief Executive Officer of MEDNAX. “In
addition, the transaction will enable us to end the year 2020, and
begin the year 2021, with a strong balance sheet to support our
commitment to take great care of the patient, every day and in
every way.”
MEDNAX intends to use the proceeds of the transaction to redeem
its $750 million in outstanding principal amount of 5.25% senior
notes due 2023, with a redemption date of January 7, 2021; to fund
certain retained liabilities; and for general corporate
purposes.
ABOUT MEDNAX
MEDNAX, Inc. is a national health solutions partner comprised of
the nation’s leading providers of physician services. Physicians
and advanced practitioners practicing as part of MEDNAX are
reshaping the delivery of care within their specialties and
subspecialties, using evidence-based tools, continuous quality
initiatives, consulting services, clinical research and
telemedicine to enhance patient outcomes and provide high-quality,
cost-effective care. The Company was founded in 1979, and today,
through its affiliated professional corporations, MEDNAX provides
services through a network of more than 3,000 physicians in all 50
states and Puerto Rico. Additional information is available at
www.mednax.com.
Certain statements and information in this press release may be
deemed to contain forward-looking statements within the meaning of
the Private Securities Litigation Reform Act of 1995, Section 27A
of the Securities Act of 1933, as amended (the “Securities Act”),
and Section 21E of the Securities Exchange Act of 1934, as amended.
Forward-looking statements may include, but are not limited to,
statements relating to the Company’s objectives, plans and
strategies, and all statements, other than statements of historical
facts, that address activities, events or developments that we
intend, expect, project, believe or anticipate will or may occur in
the future. These statements are often characterized by terminology
such as “believe,” “hope,” “may,” “anticipate,” “should,” “intend,”
“plan,” “will,” “expect,” “estimate,” “project,” “positioned,”
“strategy” and similar expressions, and are based on assumptions
and assessments made by the Company’s management in light of their
experience and their perception of historical trends, current
conditions, expected future developments and other factors they
believe to be appropriate. Any forward-looking statements in this
press release are made as of the date hereof, and the Company
undertakes no duty to update or revise any such statements, whether
as a result of new information, future events or otherwise.
Forward-looking statements are not guarantees of future performance
and are subject to risks and uncertainties. Important factors that
could cause actual results, developments, and business decisions to
differ materially from forward-looking statements are described in
the Company’s most recent Annual Report on Form 10-K and its
Quarterly Reports on Form 10-Q, including the sections entitled
“Risk Factors”, as well the Company’s current reports on Form 8-K,
filed with the Securities and Exchange Commission, and include the
impact of the COVID-19 outbreak on the Company and its financial
condition and results of operations; the effects of economic
conditions on the Company’s business; the effects of the Affordable
Care Act and potential changes thereto or a repeal thereof; the
Company’s relationships with government-sponsored or funded
healthcare programs, including Medicare and Medicaid, and with
managed care organizations and commercial health insurance payors;
the Company’s ability to comply with the terms of its debt
financing arrangements; the impact of the divestiture of the
Company’s anesthesiology and radiology medical groups and the
intended uses of proceeds thereof, including to redeem the
Company’s $750 million aggregate principal amount of 5.25% senior
notes due 2023; the impact of management transitions; the timing
and contribution of future acquisitions; the effects of share
repurchases; and the effects of the Company’s transformation
initiatives, including its reorientation on, and growth strategy
for, its pediatrics and obstetrics business.
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version on businesswire.com: https://www.businesswire.com/news/home/20201216005171/en/
Charles Lynch Senior Vice President, Finance and Strategy
954-384-0175 ext. 5692 charles_lynch@mednax.com
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