Kirkland Advises R1 RCM on $8.9 Billion Acquisition by TowerBrook and CD&R
Kirkland & Ellis advised healthcare services provider R1 RCM Inc. (NASDAQ: RCM) on a definitive agreement to be acquired in an all-cash transaction with an enterprise value of $8.9 billion by investment funds affiliated with investment management firm TowerBrook Capital Partners and private investment firm Clayton, Dubilier & Rice (CD&R). R1 is a leading provider of technology-driven solutions that transform the patient experience and financial performance of healthcare providers. The transaction was announced on August 1, 2024.
TowerBrook is currently the 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, which represents a premium of approximately 29% to the company’s unaffected closing price on February 23, 2024, the last full trading day before private equity firm New Mountain Capital publicly disclosed an initial non-binding acquisition proposal. The transaction has been unanimously approved by a special committee of the R1 Board of Directors and is expected to close by the end of the year subject to customary closing conditions.
Read the transaction press release
The Kirkland team was led by corporate partners Robert Hayward, Sarkis Jebejian, Brad Reed, Steven Choi and capital markets partners Ana Sempertegui and Ben Richards.
