Lawyers from four major firms are working on the $8.9 billion deal to take R1 RCM Inc. private.
TowerBrook Capital Partners and Clayton, Dubilier & Rice will acquire R1 in an all-cash transaction announced Thursday. The move comes amid a surge in take-private deals this year.
Kirkland & Ellis lawyers are guiding the company, which works with hospital administrators. Skadden, Arps, Slate, Meagher & Flom is steering a special committee of the R1 RCM board.
Health care deals have been a bright spot in an otherwise slow transactions market.
Public companies grappling with high costs and pressure from shareholder activists are increasingly looking to go private. Global take-private deals reached $127 billion through July, just shy of the total for all of last year, according to Bloomberg data.
Wachtell, Lipton, Rosen & Katz advised TowerBrook in the R1 deal, while Debevoise & Plimpton represented CD&R.
TowerBrook owns a 36% stake in R1. The deal is expected to close by the end of the year.
The Kirkland team was led by corporate partners Robert Hayward, Sarkis Jebejian, Brad Reed, and Steven Choi, along with capital markets partners Ana Sempertegui and Ben Richards.
The Skadden team includes M&A partners Graham Robinson, Laura Knoll and Faiz Ahmad; banking partner Janine Jjingo; executive compensation and benefits counsel Timothy F. Nelson; life sciences and health care partner Maya Florence; tax partner Moshe Spinowitz; antitrust partners Maria Raptis and Ingrid Vandenborre; and capital markets partner Ryan Dzierniejko.
The Debevoise team is led by M&A partners Kevin Rinker, Katherine Durnan Taylor and Christopher Anthony.
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