Tenet Healthcare Corporation · NYSE:THC
Tenet Healthcare — Merger or Acquisition (March 2015)
13 slides from Tenet Healthcare's merger presentation, Mar 23, 2015
Slide 1: Joint Venture with United Surgical Partners International
Joint Venture with United Surgical Partners International Tenet and Welsh Carson form Nation’s Largest Ambulatory Surgery Platform March 23, 2015
Slide 2: Forward Looking Statements; Non-GAAP Financial Information
FORWARD LOOKING STATEMENTS Certain statements contained in this presentation constitute “forward-looking statements” within the meaning of Section 27A of the Securities Act and Section 21E of the Exchange Act. Such forward-looking statements are based on management’s current expectations and involve
Slide 3: Today's Announcement
Today’s Announcement Creating the market leading ambulatory surgery platform Creating the market leader in short-stay surgery with 244 ambulatory surgery centers, 16 short-stay surgical hospitals and 20 imaging centers in 29 states. 50 not-for-profit health system partners, over 12,000 physicians on
Slide 4: Transaction Highlights
Transaction Highlights Tenet, Welsh Carson, and USPI to create nation’s largest ambulatory surgery platform; Tenet will be majority owner Combining USPI’s and Tenet’s ambulatory assets to create the market leader with the largest footprint and scale in the ambulatory surgery industry -- $2.9bn in sy
Slide 5: Transaction Structure
Transaction Structure ● Tenet and Welsh Carson to jointly own the new JV with initial equity value of ~$2.6 billion. > Tenet to initially own 50.1%; Welsh Carson and other existing shareholders to initially own 49.9%. > Entity valued at ~12.5x forward EBITDA less NCI, including the refinancing of $1
Slide 6: Increases Tenet's Growth Trajectory
Increases Tenet’s Growth Trajectory + 2015 Guidance 2015 Proforma EBITDA growth 7% – 8% 1 +100bps 2 EBITDA margin ~12% 1 +150bps 2 Free Cash Flow conversion ~12% of EBITDA 1 +300bps 2 Neutral in 2015 EPS accretion –- Accretive in 2016 10-15% in 2017 Leverage 5.7x +0.1x (net debt / year 1 proforma EB
Slide 7: Enhances Tenet's Business Mix
Enhances Tenet’s Business Mix 2014 Portfolio Mix – Prior to Portfolio Management Opportunities + Revenue Revenue Ambulatory Ambulatory Conifer 2% Conifer 6% 7% 7% Hospital Hospital Outpatient Outpatient 33% Hospital Inpatient 31% Hospital Inpatient & Other & Other 58% 56% EBITDA Ambulatory EBITDA Am
Slide 8: Overview of United Surgical Partners International
Overview of United Surgical Partners International ● USPI is the premier brand in the ambulatory surgery center industry. ● 202 ASCs and 16 surgical hospitals, ~1mm surgeries annually, 26 states. Market Leader in ● Systemwide revenue of $2.6bn in 2014; consolidated revenue of $641mm and Short-Stay S
Slide 9: Tenet and USPI – Leading Health System Partnerships
Tenet and USPI – Leading Health System Partnerships Key USPI Facilities Tenet ASC Locations Tenet Hospitals USPI Partners Tenet Partners Source: Company filings and information. Note: Not all facilities in a market are associated with a not-for- profit partnership. Locations on the map are approxima
Slide 10: Strongly Positioned for Growth and ASC Industry Consolidation
Strongly Positioned for Growth and ASC Industry Consolidation Growth Strategies Highly Fragmented ~$24bn Market 1 Enhance growth and improve performance Market share by number of facilities 2 in existing facilities USPI, 4%Tenet, 1% AMSG, 4% SCAI, 3% Surgery Expand relationships with Partners, 2% cu
Slide 11: Aspen Healthcare Overview
Aspen Healthcare Overview ● U.K. is an increasingly attractive market: > U.K. private healthcare market expected to benefit from rising patient demand and private healthcare spend > Privatization of U.K. marketplace given market inefficiencies and pressures on the National Health Service should crea
Slide 12: Tenet Portfolio Strategy Update
Tenet Portfolio Strategy Update Atlanta & North • Yielding substantial interest from a number of high-quality hospital systems. Carolina • Currently reviewing bids; potential announcement in the summer. • JV with Dignity and Ascension for Carondelet network on track to close in Q2. Tucson/Nogales, A
Slide 13: Recap of Today's Announcement
Recap of Today’s Announcement Creating industry-leading ambulatory surgery platform Creating the market leader in short-stay surgery with 244 ambulatory surgery centers, 16 short-stay surgical hospitals and 20 imaging centers in 29 states. Accelerates Tenet’s strategy to grow ambulatory offerings an
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