TowerBrook And CD&R to Acquire R1 RCM for $8.9 Billion in Cash

Healthcare technology company R1 RCM Inc. (RCM) entered into a definitive merger agreement on August 1, 2024, to be acquired by private equity firms TowerBrook Capital Partners and Clayton, Dubilier & Rice (CD&R), in an all-cash deal valued at $8.9 billion, including debt.

Deal Structure:

Under the terms of the agreement, TowerBrook and CD&R will acquire all the outstanding common stock of R1 RCM for $14.30 per share, representing a premium of 11.02% from the stock’s last close.

Company Profile:

R1 RCM Inc., based in Murray, Utah, helps hospitals and doctors’ groups manage their billing and revenue collection. They offer complete revenue cycle management, targeted improvements, quick cash collections, revenue finding, accurate medical documentation, and help with government compliance.

TowerBrook is a transatlantic investment firm that has raised over $23 billion since 2001, focusing on responsible investing and partnering with experienced managers to improve businesses. CD&R is a private investment firm founded in 1978 that builds strong, sustainable companies and generates good returns through investment and operational expertise across various industries, with offices in New York and London.

Deal Details and Timeline:

The deal is expected to close by the end of this year, with TowerBrook and CD&R planning to fund it using a mix of debt and equity.

Once the transaction is complete, R1 will become a private company. R1 RCM’s current Price/Sales (TTM) ratio is 2.34, below the sector median of 3.87.

In February, R1 RCM received a $13.75 per share takeover bid from New Mountain Capital. Although the offer was deemed too low, it led to a rival bid from TowerBrook and CD&R. Before the New Mountain bid, R1 RCM was trading at $11.10 per share.

Deal Metrics:

For a more detailed analysis of the merger, visit the Deal Metrics page here:

Deal Metrics for the acquisition of R1 RCM Inc. (RCM) by TowerBrook Capital Partners and CD&R

The Deal Metrics page for every merger or acquisition includes:

• A spread history chart from the announcement through to completion or failure of the merger.
• Progress updates including the expiration of the HSR period, various regulatory approvals, shareholder votes, etc.
• News and SEC filings.
• A history of deal updates.
• And much more.

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Editor’s Note: Baranjot Kaur contributed to this article