R1 RCM To Be Taken Private By TowerBrook And CD&R For $8.9 Bln Cash

(RTTNews) - R1 RCM, Inc. (RCM) announced Thursday that it has entered into a definitive agreement to be acquired by investment funds affiliated with TowerBrook Capital Partners and Clayton, Dubilier & Rice or CD&R, in an all-cash transaction with an enterprise value of approximately $8.9 billion.

An investment vehicle controlled by TowerBrook is currently the beneficial owner of approximately 36% of the Company's outstanding shares of common stock, including the warrant held by TowerBrook.

Under the terms of the agreement, TowerBrook and CD&R will acquire all the outstanding common stock that TowerBrook does not currently own for $14.30 per share.

The consideration of $14.30 per share in common stock to R1 stockholders represents a premium of approximately 29% to the Company's unaffected closing price on February 23, 2024, the last full trading day before New Mountain Capital publicly disclosed its initial non-binding acquisition proposal.

The transaction has been unanimously approved by a special committee of the R1 Board of Directors comprised solely of independent directors, which was earlier formed to evaluate strategic alternatives. Following the recommendation of the Special Committee, R1's Board approved the transaction.

Upon completion of the transaction, R1 will become a private company and its shares will no longer trade on Nasdaq. The transaction is expected to close by the end of the year, subject to customary closing conditions, including receipt of stockholder approval and regulatory approvals.

The transaction is expected to be financed with a combination of committed debt financing and equity from investment funds affiliated with TowerBrook and CD&R.