Air Medical Group Holdings, American Medical Response to create integrated medical transportation company

Envision Healthcare Corporation (NYSE: EVHC) and an entity controlled by funds affiliated with KKR have entered into a definitive agreement under which KKR´s portfolio company, Air Medical Group Holdings (AMGH), and Envision´s medical transportation subsidiary, American Medical Response (AMR), will combine to create a new industry medical transportation company, the company said.

The transaction will be structured as a cash acquisition of AMR from Envision valued at USD 2.4 billion.

The combination of AMGH and AMR will create an integrated medical transportation company with the capability to serve patients across multiple transport modalities in the patient´s time of need. The combined company is expected to transport more than five million patients per year through a fleet of air and ground ambulances across 46 states and the District of Columbia.

Upon completion of the transaction, the combined company will adopt a new name that reflects the unique capabilities of the two organizations. Following the closing of the transaction, AMR and AMGH will continue to support operations from two key leadership locations in Greenwood Village, CO, and Lewisville, TX. The new company´s two divisions will continue to be led by strong leaders with extensive experience running medical transportation organizations.

Fred Buttrell will continue as President and Chief Executive Officer of the Air Medical division.

Edward Van Horne will continue as President and Chief Executive Officer of the AMR division.

Also, Michael Preissler, Chief Financial Officer at AMGH, and Thomas Cook, General Counsel at AMGH, will serve in the same roles for the combined company.

The pending acquisition is subject to regulatory approval and customary closing conditions, including clearance under the Hart-Scott-Rodino Antitrust Improvements Act, and is expected to close in the fourth quarter of 2017.

Guggenheim Securities is acting as exclusive financial advisor and Bass, Berry & Sims is acting as legal advisor to Envision. Barclays is acting as financial advisor and Simpson Thacher & Barlett LLP is acting as legal advisor to AMGH. Citi and Goldman Sachs are acting as financial advisors and Fried, Frank, Harris, Shriver, & Jacobson LLP is acting as legal advisor to KED.

Envision Healthcare is a provider of physician-led services and post-acute care, and ambulatory surgery services.

Air Medical Group Holdings Inc. (AMGH), headquartered in Dallas, Texas, is a provider of air and ground ambulance programs in the US and internationally.

American Medical Response, Inc. (AMR), America´s provider of medical transportation, provides services in 40 states and the District of Columbia. More than 27,000 AMR paramedics, EMTs, RNs and other professionals work together to transport more than 4.4 million patients nationwide each year in critical, emergency and non-emergency situations.

KKR is a global investment firm that manages multiple alternative asset classes, including private equity, energy, infrastructure, real estate, credit and, through its strategic partners, hedge funds.