#United States #Select Medical #Concentra #spin-off #Mechanicsburg

Select Medical Holdings Completes Concentra Spin-Off

On November 25, 2024, Select Medical Holdings Corporation announced the completion of the spin-off of Concentra Group Holdings Parent, Inc. Initially disclosed earlier this year, this significant restructuring aligns with Select Medical's strategic vision to enhance shareholder value and market position in healthcare.

The distribution involved 104,093,503 shares, representing approximately 81.7% of Concentra's outstanding common stock. This stock distribution was crucial for Select Medical, marking the end of its ownership in Concentra. The process was carried out on the record date of November 18, 2024, and was executed in the form of a pro rata distribution to eligible stockholders.

Detailed Distribution Process

Stockholders received shares of Concentra common stock based on their holdings in Select Medical. Each stockholder was credited with 0.806971 shares of Concentra’s stock for every share held on the record date. In place of fractional shares, cash payments were provided, ensuring equity among all stockholders.

An information statement was sent to stockholders on November 19, detailing this transition. This statement, which included pertinent information about the distribution and Concentra's services, is accessible on Select Medical's Investor Relations webpage.

Strategic Implications for Select Medical

The step taken by Select Medical illustrates its commitment to consolidating its focus on critical illness recovery and rehabilitation services. Operating 106 critical illness recovery hospitals and 34 rehabilitation facilities across 29 states, Select Medical has a firm foothold in these essential healthcare segments. The company also manages nearly 2,000 outpatient rehabilitation clinics and over 500 occupational health centers, reflecting its broad reach and influence in the U.S. healthcare landscape.

Concentra's division into a separate entity allows Select Medical to sharpen its strategic goals, primarily focusing on enhancing healthcare services provided through its established facilities. Such restructuring not only aims to foster operational efficiencies but also positions Select Medical to thrive competitively within the healthcare sector, especially amidst evolving market dynamics.

Financial Backing and Legal Guidance

The distribution was supported by prominent financial advisors J.P. Morgan and Goldman Sachs, who guided Select Medical through the process of this spin-off. Legal expertise was provided by Dechert LLP, ensuring compliance and facilitating a seamless transition for stockholders.

Looking Forward

The strategic restructuring reflects not just a shift in corporate direction, but also highlights Select Medical's dedication to optimizing its service offerings and delivering enhanced value to its stockholders. Shareholders will continue to benefit from their investment in Select Medical while having the opportunity to hold shares in Concentra, expanding their portfolio within the healthcare industry.

As Select Medical moves forward post-spin-off, it remains dedicated to improving patient care and outcomes across its various service lines. This focus is vital not only for maintaining its competitive edge but also for fulfilling its mission of providing comprehensive healthcare solutions across the nation.

For further inquiries or additional details about the distribution and the future of Select Medical and Concentra, stockholders and interested parties are encouraged to refer to the official Select Medical website or contact the investor relations department for the most up-to-date information.