KKR & Co. L.P. KKR yesterday announced a deal to acquire helicopter ambulance company Air Medical Group Holdings Inc. for $2 billion. The private equity firm was in talks with Bain Capital LLC, the owner of Air Medical, to negotiate a contract for the same.
About Air Medical
Based in Texas, Air Medical operates at 231 base locations across 34 states and provides global repatriation medical transports. The main service of this leading provider of air ambulance services is to provide timely emergency transportation to critical patients located far from hospitals.
Through its subsidiaries, Air Medical reaches out to over 75,000 critically injured patients each year. With a fleet of 222 helicopters and 25 airplanes, Air Medical operates 24 hours a day and seven days a week.
Private equity firm Bain Capital acquired Air Medical in 2010 from Florida-based Brockway Moran & Partners Inc and Pennsylvania-based MVP Capital Partners in a $1 billion deal.
About the Deal
Through this partnership, KKR will facilitate efforts undertaken by Air Medical’s management to supply safe, premium emergency transportation services to communities that are located at a distance from acute medical care. Moreover, the firm will fund the $2 billion transaction primarily from its North America XI Fund.
The deal is expected to be closed in the second quarter and is subject to customary regulatory approvals. Morgan Stanley, Jefferies and KKR Capital Markets will provide debt financing for the agreement.
Our Take
KKR has been an active investor in helicopter businesses as well as health care space and holds investments in companies like HCA Holdings, Inc. HCA and Weststar Aviation. Now, with its decision to acquire Air Medical, the company looks forward to capitalize on available opportunities for service expansion.
Currently, KKR carries a Zacks Rank #3 (Hold). Some better-ranked investment management firms include OM Asset Management Limited OMAM and Woori Bank Co., Ltd. WF. Both these stocks hold a Zacks Rank #1 (Strong Buy).
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