PE Firm Sets Ventures With Select Medical Holdings Corp., Tenet Healthcare Corp.

Private equity health-care firm Welsh, Carson, Anderson & Stowe made big moves Monday, setting up separate joint ventures with Select Medical Holdings Corp.

and Tenet Healthcare Corp.

. Tenent, which agreed to buy into a $2.5 billion joint venture with Welsh for ambulatory surgical centers, changed hands recently at $52.29, up more than 5 percent. Select Medical agreed to pay $1.06 billion to form a joint venture with Welsh that will acquire Humana Inc.'s

Concentra urgent care unit, gained 4 percent to $16.26. Dallas-based Tenent will pay $425 million in cash and assume $1.5 billion in debt for a 50.1 percent stake in a venture that combines Tenent's 64 surgery centers with 218 of United Surgical Partners International, which is owned by Welsh as well as other shareholders. Tenent obtained a five-year option to acquire the remaining stake in the venture, expected to have an equity value of $2.5 billion as the nation's largest ambulatory surgical organization. Tenet will also buy Aspen Healthcare in the U.K. from Welsh for $215 million in cash. Aspen Healthcare won't be included in the new joint venture. Separately Monday, Mechanicsburg, Pennsylvania-based Select Medical agreed to pay $1.06 billion for a 50.1 percent stake in a venture with Welsh Carson that will acquire Humana's Concentra unit in the second quarter. Concentra operates more than 300 medical centers and 170 clinics in 40 states. Humana traded recently at $182.07, down $0.72 cents.