Overview of the Deal
- Acquirer: Welsh, Carson, Anderson & Stowe (WCAS)
- Target: U.S. Anesthesia Partners (USAP)
- Total Transaction Size: Not publicly disclosed
- Announcement Date: Not publicly disclosed
- Expected Close Date: Not publicly disclosed
- Target Advisors: Not publicly disclosed
- Acquirer Advisors: Not publicly disclosed
Welsh, Carson, Anderson & Stowe (WCAS), a private equity firm, has been involved with U.S. Anesthesia Partners (USAP), a leading provider of anesthesia services in the United States. While specific details regarding the acquisition date and financial terms have not been publicly disclosed, WCAS’s involvement with USAP has come under regulatory scrutiny. The Federal Trade Commission (FTC) charged WCAS with attempting to monopolize the Texas anesthesia market to raise prices. In response, WCAS settled with the FTC, agreeing to limit its involvement with USAP and to seek regulatory approval for future anesthesia acquisitions.
Company Details (Acquirer – Welsh, Carson, Anderson & Stowe)
Welsh, Carson, Anderson & Stowe is a private equity firm specializing in investments in healthcare and technology companies. With over $27 billion in capital raised since its inception, WCAS focuses on investing in growth-oriented companies in these sectors.
- Founded: 1979
- Headquarters: New York, New York, USA
- Assets Under Management: Over $27 billion
- Recent Transactions:
- Acquisition of InnovAge, a provider of senior care services (2021)
- Investment in Shields Health Solutions, a specialty pharmacy integrator (2021)
Company Details (Target – U.S. Anesthesia Partners)
U.S. Anesthesia Partners is a single-specialty anesthesia practice, providing anesthesia services across various states in the U.S. USAP partners with high-quality anesthesia practices and provides the capital and resources needed to build a national anesthesia organization.
- Founded: 2012
- Headquarters: Dallas, Texas, USA
- Number of Employees: Not publicly disclosed
- Annual Revenue: Not publicly disclosed
Projections and Assumptions
Short-Term Consequences
The settlement with the FTC requires WCAS to limit its involvement with USAP and to seek regulatory approval for future anesthesia acquisitions. This may impact USAP’s expansion plans and operational strategies in the short term.
Long-Term Upsides
Despite the regulatory challenges, USAP continues to be a significant player in the anesthesia services market. With adjustments to its growth strategies, the company can continue to provide quality services and explore new opportunities within the regulatory framework.
Risks and Uncertainties
The primary risk involves navigating the regulatory landscape following the FTC settlement. USAP and WCAS will need to ensure compliance with the settlement terms, which may affect future acquisitions and market strategies.
Sources
