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THL Partners to buy out and make Agiliti private in $2.5 billion deal

by John R. Fischer, Senior Reporter | February 29, 2024
Business Affairs
THL Partners will buy the remaining shares in Agiliti for $2.5 billion and take the company private.
Private equity firm Thomas H. Lee Partners is buying out and taking Agiliti private in a cash transaction worth approximately $2.5 billion.

Formed in 1974, THL has raised over $35 billion of equity capital, invested in over 170 companies, and completed more than 600 add-on acquisitions. Its strategy involves combining deep sector expertise with internal operating resources from its strategic resource group to restructure and build up the value of companies.

THL is already the majority shareholder in Agiliti and will purchase the remaining shares for itself and its affiliates and certain management shareholders at $10 per stock. The agreement was deemed to be in Agiliti’s best interest by a special committee of the Agiliti board of directors, composed solely of nonmanagement directors not affiliated or associated with THL, and advised by its own independent legal and financial advisors.

The price per share being offered to Agiliti stakeholders is 39% higher than the average trading price for its stocks over the past 30 days and 43% more than their value over the past 90 days. Upon completion of the deal, Agiliti will become private and no longer be publicly listed or traded on the New York Stock Exchange.

“We are pleased to expand our five-year partnership with THL in a transaction that provides immediate value and liquidity to our shareholders while lifting certain overhangs that had limited our performance in the public market since the time of our IPO,” said Tom Leonard, CEO of Agiliti, in a statement.

Agiliti provides medical technology management and service solutions to 10,000 national, regional, and local acute care and alternate sites. The company is staffed with over 5,500 personnel who help hospitals manage compliance requirements, cost, rising consumerism, talent shortages, and quality issues with medical devices. Its products range from surgical lasers to bed frames, wheelchairs, and portable medical equipment such as ventilators. It also services and repairs equipment, including CT, PET/CT, MR, and ultrasound scanners.

Agiliti launched a $500 million IPO in 2021, estimating at the time that it would bring $2.6 billion in market value to the company. The majority of proceeds raised were used to pay off its debts, which amounted to $922.2 million at the end of 2020.

As the majority shareholder, approval of the buyout is only required from THL Agiliti LLC.

The agreement, which is subject to customary closing conditions, is expected to be completed in the first half of 2024.

THL declined HCB News' request for comment.

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