#United States #Select Medical #Mechanicsburg #WCAS #Robert Ortenzio

Select Medical Holdings Corporation Acquisition Finalized

Select Medical Holdings Corporation, a major player in healthcare, has successfully completed its acquisition led by a consortium which includes Robert A. Ortenzio, Executive Chairman and Co-Founder, along with Martin F. Jackson, its Senior Executive Vice President of Strategic Finance and Operations, and Welsh, Carson, Anderson & Stowe (WCAS). This strategic acquisition, guided by the terms outlined in the Merger Agreement from March 2, 2026, represents a pivotal moment for Select Medical.

The finalized acquisition comes with a notable purchase price of $16.50 per share, marking an 18% premium over the company's unaffected share price recorded on November 24, 2025, the day before Mr. Ortenzio presented a proposal to the Board of Directors. Moreover, the price reflects a 25% premium over the company's 90-day volume-weighted average share price before the announcement, ultimately valuing Select Medical at approximately $3.9 billion.

Starting from July 1, 2026, at exactly 12:01 AM, this acquisition will become effective, leading to the cessation of trading for Select Medical's common stock on the New York Stock Exchange. Following this transition, the consortium will retain operational control over the company, while Mr. Ortenzio and Mr. Jackson will maintain their leadership roles.

The approval of this transaction by the stockholders at the Special Meeting held on June 26, 2026, showcases strong support from both affiliated and non-affiliated stockholders, mirroring confidence in the consortium’s vision for Select Medical.

Select Medical is renowned for operating a comprehensive network of healthcare facilities across the U.S., focusing on critical illness recovery hospitals, rehabilitation hospitals, and outpatient rehabilitation clinics. Until the end of March 2026, the organization boasted 103 critical illness recovery hospitals throughout 28 states, 41 rehabilitation hospitals in 15 states, and over 1,900 outpatient rehabilitation clinics distributed across 37 states and the District of Columbia. This extensive infrastructure indicates Select Medical’s significant footprint in the healthcare industry and its commitment to providing essential services.

WCAS, the private equity firm leading this investment, has established itself as a premier entity within the healthcare and technology sectors since its inception in 1979. With a robust strategy focused on partnering with proficient management teams, WCAS aims to drive value through operational improvements and growth initiatives. The firm has successfully managed over $33 billion in committed capital, reinforcing its capability to foster advancements within the companies it engages with.

The acquisition is being supported by J.P. Morgan and Wells Fargo, serving as joint lead arrangers for the debt financing. Additionally, Goldman Sachs is acting as the exclusive financial advisor, while Skadden, Arps, Slate, Meagher & Flom LLP is providing legal counsel to the Special Committee of independent directors overseeing the transaction. This multifaceted support ensures that all aspects of the complex merger process are handled with utmost diligence.

As the healthcare landscape evolves, Select Medical's merger with this consortium signals a commitment to enhancing recovery solutions and operational effectiveness within the healthcare domain. Industry experts and stakeholders are keen to see how these changes will further bolster Select Medical’s capabilities in providing essential health services across the nation.

For further insights about Select Medical, additional information can be found on their official website: www.selectmedical.com.