M&A · Industrials · Services-Management Services
TowerBrook and CD&R to acquire R1 RCM Inc.
Announced Aug 1, 2024 · Closed Nov 19, 2024
Deal value$8.90BEV $8.90B
Premium29.0%To unaffected price
EV / Adj. EBITDA16.2x3.8x EV / Revenue
ConsiderationAll cash$14.30 per share
Transaction
- Acquirer
- TowerBrook and CD&R
- Target
- R1 RCM Inc. (RCM)
- Buyer type
- Private equity
- Offer price per share
- $14.30
- Enterprise value
- $8.90B
- Status
- Closed Nov 19, 2024
Deal protections
- Break fee (target pays)
- $250M · 2.8%
- Reverse fee (buyer pays)
- $550M · 6.2%
- Go-shop
- No-shop
- Financing
- Committed · Barclays, Deutsche Bank, RBC Capital Markets
Advisors
- To the acquirer
- Centerview, Deutsche Bank, RBC Capital Markets
- To the target
- Qatalyst, Barclays
Sector context · Industrials
- Comparable deals
- 84 in the prior 24 months
- Premium
- 29.0% vs. 37.0% sector median
- EV / Adj. EBITDA
- 16.2x vs. 9.8x sector median
- Break fee
- 2.8% vs. 2.8% sector median
Timeline
- AnnouncedAug 1, 2024
- Proxy filedAug 30, 2024
- Definitive proxyOct 16, 2024
- Shareholder voteNov 14, 2024
- ClosedNov 19, 2024
Valuation · fairness opinions
Discounted cash flowQatalyst$8.14$15.84
Discounted cash flowQatalyst$8.69$14.98
Discounted cash flowQatalyst$8.61$14.86
Discounted cash flowQatalyst$11.97$17.22
Discounted cash flowQatalyst$10.92$16.25
Discounted cash flowBarclays$9.93$16.24
Trading comparablesBarclays$12.27$14.95
Trading comparablesBarclays$13.42$16.54
Precedent transactionsBarclays$11.66$17.02
Analyst price targetsBarclays$12.00$20.00
Offer $14.30
Implied value per R1 RCM Inc. share by analysis, from Qatalyst and Barclays.