UHS, a portfolio company of Irving Place Capital Management, will combine with Federal Street Acquisition (FSAC), a special purpose acquisition company sponsored by an affiliate of Thomas H. Lee Partners.

The companies will combine under a new holding company to be named Agiliti.

The purchase price for the acquisition implies an initial enterprise value
for the combined company of about $1.74bn.

The boards of directors of both UHS and FSAC have unanimously approved the transaction, which is expected to be completed in the fourth quarter of this year, subject to customary and other closing conditions, including regulatory approvals and approval from FSAC’s shareholders.

FSAC executive chairman and THL co-president Scott Sperling said: “We have long admired Tom Leonard and the incredible team at UHS and could not be more excited to partner with them as the Company enters an exciting, new chapter with a new name – Agiliti – which is emblematic of their everyday approach.”

Sperling added that the UHS’s strong position, broad range of capabilities and strong business model have made this a highly attractive investment for FSAC and THL.

After the merger transaction is completed, Tom Leonard will continue to lead the company the CEO and will be supported by Jim Pekarek as chief financial officer, Kevin Ketzel as president and Bettyann Bird as the Marketing and Commercial Solutions senior vice president.

UHS CEO Tom Leonard said: “For nearly 80 years, UHS has provided market-leading equipment management services to the U.S. healthcare industry. Throughout the Company’s evolution, our goal has always been to help customers manage the complexities of owning and maintaining medical equipment, so that caregivers have more time to focus on patients.

“Today, we serve more than 7,000 healthcare providers nationwide with an end-to-end solution called ‘Equipment Value Management’ that helps customers address important clinical, operational and financial objectives. The Company is well positioned in the market with strong momentum for continued value creation, and we are pleased to have the opportunity to advance our business as Agiliti, alongside our new partners at FSAC and THL.”