Recent months have witnessed significant shifts in the ownership of two notable Charlotte-based public companies, Brighthouse Financial and Premier, as they fall into the hands of private equity firms. This development reflects an ongoing trend of private equity interest in profitable companies, particularly those catering to the needs of baby boomers.
Brighthouse Financial, a major player in the annuities and life insurance market, was acquired by New York’s Aquarian Capital for $4.1 billion. Initially spun off from MetLife in August 2017, Brighthouse struggled to maintain investor confidence as its stock, which debuted at around $65, fluctuated below $30 during the pandemic. Recently, shares have stabilized in the $40 to $50 range, leading to Aquarian’s recent offer of $70 per share.
In another transaction, Premier, a healthcare service provider, agreed to a sale to Patient Square Capital for $2.6 billion at $28.25 per share. Premier, formed in 1996 through the merger of various healthcare alliances, has played a crucial role in enhancing efficiencies for numerous healthcare providers, including hospitals and nursing homes. Despite reaching a peak share price of $45 in 2018, its stock struggled, trailing below $25 in recent years.
The acquisition of Brighthouse reflects a growing appetite among private equity firms for life and annuity platforms. Aquarian, which manages approximately $25.6 billion in assets, has plans to maintain Brighthouse as a standalone entity while advancing its operational strategy. CEO Eric Steigerwalt, who has led the company since its inception, is expected to continue in his role post-acquisition.
Meanwhile, Premier has faced declining revenue and income in recent years, prompting its decision to explore strategic alternatives. The company reported $1 billion in revenue last year, down from a record $1.7 billion in 2021. Patient Square Capital, which has over $14 billion in assets under management, expressed enthusiasm for Premier’s innovative capabilities and future growth potential.
Both transactions, contingent upon regulatory and shareholder approvals, highlight the evolving landscape of public-to-private transitions, particularly in sectors benefiting from demographic shifts towards an older population.
