Tenet’s USPI Agrees to Acquire Minority Stake in 9 ASCs from Compass

Tenet Healthcare Corporation (THC) announced that its subsidiary United Surgical Partners International (USPI) has inked a deal with Compass Surgical Partners (Compass) to acquire its ownership and management interests in nine ambulatory surgery centers (ASCs).

Markedly, shares of the multinational healthcare services company have gained 123% over the past year. The financial terms of the deal have been kept under wraps. (See Tenet Healthcare stock charts on TipRanks)

The transaction aligns with USPI’s strategic initiative to acquire, integrate, and successfully grow well-established facilities as well as ramp up new centers.

Per the terms of the deal, USPI will buy a 20% minority ownership interest in the nine centers. USPI will also take up the management responsibilities of the centers through partnerships with around 125 physicians and local health systems.

The ASC portfolio comprises well-established and new centers situated in Florida, North Carolina, and Texas, with 60% of the mix linked to musculoskeletal procedures and 40% mainly to ENT and ophthalmology.

The deal is expected to close in the fourth quarter of 2021, subject to certain regulatory approvals.

Leerink Partners analyst Jim Kelly recently initiated coverage of Tenet Healthcare with a Hold rating and price target of $80 (29% upside potential).

Consensus among analysts is a Strong Buy based on 9 Buys and 4 Holds. The average Tenet Healthcare price target of $84.69 implies 36.6% upside potential to current levels.

TipRanks data shows that financial blogger opinions are 100% Bullish on THC, compared to a sector average of 71%.

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