Select Medical Holdings Corporation Enters Acquisition Agreement Led by Robert A. Ortenzio and Consortium

Acquisition of Select Medical Holdings Corporation by Leading Consortium

Select Medical Holdings Corporation, a major player in critical illness recovery and rehabilitation, has officially entered into a merger agreement. This agreement signifies a transition for the company as it is set to be acquired by a consortium led by notable figures, including Robert A. Ortenzio, the Executive Chairman and Co-Founder, along with Martin F. Jackson, the Senior Executive Vice President of Strategic Finance and Operations. Their team is in partnership with Welsh, Carson, Anderson & Stowe (WCAS), a prominent private equity firm.

The deal includes the purchase of all outstanding shares of Select Medical that are not already owned by the consortium, at a price of $16.50 per share. This proposed acquisition offers an enterprise value of approximately $3.9 billion. The board of directors, following a thorough review and evaluation by a special committee, unanimously approved the merger arrangement, confirming that the transaction aligns with the best interests of shareholders who are uninvolved with the consortium.

The proposition constitutes an enticing offer for shareholders, providing an estimated premium of about 18% over the company’s share price as of November 24, 2025. Furthermore, it presents a 25% premium over the average closing price of the shares over the 90-day period concluding on that date. It is notable that Mr. Ortenzio, Mr. Jackson, and some of their affiliates intend to roll over their equity into the parent entity of the resulting firm rather than opting for cash compensation.

Throughout the merger's progression, Select Medical will continue its operations without interruption, maintaining its commitment to patients and business partners. The existing management team will remain in its current form post-merger, ensuring that stability and continuity are upheld. Importantly, as current stakeholders, both Ortenzio and WCAS are classified as