#USA #Select Medical #Mechanicsburg #WCAS #Robert Ortenzio

Select Medical Holdings Merger Approved

Select Medical Holdings Corporation, a leading provider of critical illness recovery and rehabilitation services in the United States, has officially received stockholder approval for its previously announced acquisition. The deal, involving a consortium led by Robert A. Ortenzio, Co-Founder and Executive Chairman, alongside Senior Executive Vice President Martin F. Jackson and the private equity firm Welsh, Carson, Anderson & Stowe (WCAS), was validated during the special meeting held on June 26, 2026.

This approval signifies a strong endorsement from the company's stakeholders, with approximately 82.54% of the outstanding shares voting in favor. Notably, over 79.88% of all shares and approximately 76.64% of shares held by unaffiliated stockholders supported the merger. The outcome showcases a high level of confidence in the strategic direction of Select Medical, which operates in 38 states and the District of Columbia.

The merger’s closing is subject to specific conditions outlined in the merger agreement, which will be finalized as detailed in the Definitive Proxy Statement filed with the SEC. Select Medical anticipates that the merger's consummation will occur mid-2026, pending any regulatory approvals and satisfaction of all conditions outlined in the agreement.

Details of the Merger

According to the statements released, the merger will further enhance Select Medical's capabilities in delivering critical services across its operating segments, which include critical illness recovery hospitals, rehabilitation hospitals, and outpatient clinics. As of March 31, 2026, Select Medical has grown to operate 103 critical illness recovery hospitals, 41 rehabilitation hospitals, and nearly 2,000 outpatient rehabilitation clinics, asserting itself as a significant player in the healthcare sector.

Strategic Partnerships and Advisors

In connection with this merger, several financial institutions have stepped in to provide advisory and financing services. J.P. Morgan and Wells Fargo have taken on the roles of joint lead arrangers, while Goldman Sachs serves as the exclusive financial advisor. Meanwhile, Skadden, Arps, Slate, Meagher & Flom LLP is providing legal counsel to Select Medical's Special Committee, ensuring that the interests of disinterested directors are upheld throughout the process.

WCAS has been recognized for its strategic investments and partnerships in technology and healthcare since its establishment in 1979, with a focus on improving operational efficiencies and generating investor value. Their collaboration with Select Medical is seen as a significant move toward further growth and stability in the healthcare landscape.

Implications for Shareholders and Future Outlook

While the merger's approval marks a turning point, it is essential for stakeholders to remain cautious as the proposed integration comes with known challenges. Forward-looking statements from Select Medical outline potential risks associated with the merger, including delays in approval processes and impacts on ongoing operations. These factors could influence the projected outcomes and overall performance post-merger.

Select Medical has reiterated its commitment to transparency and will provide further updates as the merger progresses, ensuring that shareholders are kept informed of any developments.

Conclusion

Overall, the approval of the merger signifies a pivotal moment for Select Medical Holdings as it embarks on an expansive journey towards growth and improved service delivery in the healthcare sector. As the company prepares for the closing in upcoming months, stakeholders and the market keenly await the advancements that this merger promises to bring.

For more information about Select Medical and its services, please visit their official website at www.selectmedical.com.