NASHVILLE, TN, July 29, 2002 – Surgis, Inc. (“Surgis”) announced today $100 million of funding commitments from New Mountain Capital, LLC and the completion of acquisitions which establish Surgis as one of the nation’s largest healthcare companies focused on the large and rapidly growing surgical services market.
Nashville healthcare executive Joseph Hutts is President and CEO of the new company. Steve Klinsky, founder of New Mountain Capital, serves as non-executive Chairman. Other senior executives are composed of seasoned health care professionals with long histories in surgical services and the healthcare industry.
The company announced today it has acquired Surgery Centers of America II, which has fifteen ambulatory surgery centers either in operation or under development. Surgis has also acquired American Endoscopy Services, Inc., a Nashville based corporation that presently manages endoscopic services in twenty-two hospitals. The company also said it has acquired three freestanding ambulatory surgery centers and has another eight center acquisitions pending.
“We are very excited to be able to work with New Mountain Capital and we expect their sponsorship to contribute significantly to the building of Surgis into a market leader” said Hutts. “Steve Klinsky has a truly exceptional track record in private equity, and he and his team have already added tremendous value towards our company’s successful start.”
“New Mountain has intensively studied the surgery services industry for more than fourteen months, and we believe it is an outstanding sector for new investment” said Steve Klinsky, New Mountain’s Chief Executive and Founder. “Over the last seven months, Joe Hutts and his team have proven to us that they have the experience, ability, energy and integrity to build a world class leader in this highly attractive sector. New Mountain is very pleased with the initial platform the company has assembled, and we are proud to be present at the creation of a new leader in healthcare services.”
Hutts added “The fundamental surgery services model that Surgis and New Mountain are pursuing is well established, and a proven success for physicians, patients, payors and investors. Surgis, Inc. begins as a strongly capitalized company with a national network of the highest quality surgery centers, and with partnerships at twenty-two of the nation’s top hospitals. Surgis has a tight strategic focus and a clear mission to be the very best in our industry, both clinically and financially. Our company will benefit as technology and demographics continue to expand the number of outpatient surgical procedures in future years. With New Mountain’s support, we intend to use our company’s financial strength to grow rapidly, both through organic expansion and through carefully selected additional acquisitions.”
About Surgis: Surgis, Inc. is a surgical services company, which owns and manages ambulatory surgery centers in partnership with physicians and hospitals. It also manages certain surgical services for hospitals. It was formed through a merger of two start-up companies, Nashville, TN based Surginet and Orlando, FL based Innovative Surgical Solutions. Its founders include Joseph Hutts, Derril Reeves, Mike Gould, Jeff Bogle, Jeff Sapp, Patrick Murphy and Jot Hollenbeck. The company’s website can be found at www.surgisinc.com.
About New Mountain Capital
New Mountain Capital, LLC is the sponsor of New Mountain Partners, L.P., a $770 million fund which seeks exceptional long-term capital appreciation through private equity and equity-related investments. New Mountain chiefly pursues the highest quality, middle market growth companies in carefully selected industries, and then works closely with management after the acquisition to build value. The company’s website can be found at www.newmountaincapital.com.