Two prominent Charlotte public companies have been taken over in recent months by private equity groups, continuing a trend that shows no sign of slowing down.
Both Brighthouse Financial and Premier were profitable companies with businesses tied to baby boomers. Brighthouse is a leading seller of annuities and life insurance products, while Premier aims for efficiencies in the healthcare sector, where spending is dominated by an aging population.
Neither company’s results impressed investors after many years on the public markets, making them targets for PE groups that expect to unlock value missed by others.
In early November, New York-based Aquarian Capital announced it would buy Charlotte-based Brighthouse Financial for $4.1 billion. The 1,400-employee company began trading on Nasdaq in August 2017 following its spinoff from insurance giant MetLife. Its stock opened more than eight years ago at about $65, while the Aquarian deal proposes a
$70 per share payout.
Shares traded for less than $30 for much of 2020, amid the pandemic. But it has mostly been in the $40 to $50 range since then.
In September, healthcare service provider Premier agreed to be sold to Menlo Park, California-based Patient Square Capital for $28.25 per share, or $2.6 billion. That compares with Premier’s IPO price of $27 in 2013.
Premier is among the largest alliances of hospitals, nursing homes, surgery centers and other healthcare sites that buy billions of dollars of supplies annually. It has added other services over the years to help those providers cut costs and improve patient care.
The company’s shares reached a record high of $45 in 2018, but slumped over the past two years, trading for less than $25 during that period.
BRIGHTHOUSE’S STORY
Brighthouse is a large and well-capitalized company. It has 2 million customers, assets of $243 billion and solid reports from A.M. Best and the other credit rating agencies. CEO Eric Steigerwalt has led the company since the 2017 spinoff and will remain in charge, Aquarian said when the sale was announced.
But the company reported fluctuating results. It posted net income after dilution of
$286 million last year, after reporting a $1.2 billion loss in 2023 and gains of $3.8 billion in 2022 and $1.5 billion in 2021. It also bought back more than 40% of its shares between 2018 and 2025, reducing the float to about 62 million shares.
It marks one of the largest recent acquisitions of a U.S. publicly traded insurer and underscores private equity’s growing appetite for life and annuity platforms, according to Private Equity Wire.
Aquarian said Brighthouse Financial will operate as a standalone entity, keep its name and remain headquartered in Charlotte’s Ballantyne area. “This transformative transaction marks an exciting new chapter for Brighthouse Financial and is the culmination of a process initiated by our board of directors earlier this year,” Steigerwalt said in a release. He has received annual compensation averaging $10 million over the past three years.
Founded in 2017, New York-based Aquarian Capital has approximately $25.6 billion in assets under management with 35 investments. It is backed by New York City-based RedBird Capital Partners and Abu Dhabi state fund Mubadala.
The deal requires shareholder and regulatory approvals.
“The acquisition of Brighthouse Financial aligns perfectly with our strategic focus on the United States retirement market, which represents a significant and growing opportunity,” said Rudy Sahay, founder and managing partner of Aquarian Capital. “We plan to preserve Brighthouse Financial’s disciplined and thoughtful approach to distribution, products and services while accelerating its strategy through continued investment and customer focus.”
PREMIER’S STORY
Premier was formed through the 1996 merger of Charlotte-based SunHealth Alliance, Chicago-based Premier Health Alliance and San Diego-based American Healthcare. It has 2,700 employees and, like Brighthouse, is based in the Ballantyne office park in south Charlotte. Its mission has been to help providers become more efficient and control soaring healthcare costs.
Premier’s member owners, primarily hospitals, had voting control of the company’s shares until a 2020 restructuring. Now, the biggest owners are investment giants BlackRock and Vanguard Group, which own 14.6% and 12.6% of Premier shares, according to its 2024 proxy statement.
The company’s shares reached a record high of $45 in 2018, but slumped over the past two years, trading for less than $25 during that period.
Premier’s net income from continuing operations totaled $62 million in its June 30 fiscal year, down from $117 million in 2024 and a peak of $598 million in 2020. Revenue was $1 billion last year, declining from a record $1.7 billion in 2021.
The sale followed “careful consideration of a wide range of strategic alternatives in recent years,” Chairman Richard Statuto said in a release.
“We believe this transaction is in the best interests of Premier and its stockholders and, upon closing, will deliver immediate and certain value to our stockholders, while simultaneously providing the company with access to additional capital that can accelerate the support and services provided to members and other customers during this critical time in healthcare,” he says.
CEO Michael Alkire joined the company in 2003 and became chief operating officer in 2013. In 2021, he succeeded Susan Devore, who had been CEO for 12 years. Alkire’s annual compensation has averaged $9.2 million over the past three years.
Patient Square Capital invests in healthcare and has more than $14 billion of assets under management. Earlier this year, the company bought St. Paul, Minnesota-based dental and animal health supply company Patterson for $2.6 billion.
“We have long admired Premier as an innovator of essential services and products to its members, which are leading institutions and providers in the U.S. healthcare system,” Patient Square Founding Partner Neel Varshney said in a release. “Our team sees tremendous opportunity for Premier to continue growing its differentiated portfolio in supply chain services, data and technology offerings, and consulting solutions that deliver value to patients.”■
David Mildenberg is editor of Business North Carolina. Reach him at dmildenberg@businessnc.com.
