Select Medical to be acquired by consortium for $16.50 per share in cash

Select Medical (SEM) Holdings announced that it has entered into a definitive agreement pursuant to which an entity affiliated with a consortium led by Robert Ortenzio, Executive Chairman, Co-Founder and Director of Select Medical, Martin Jackson, Senior Executive Vice President of Strategic Finance and Operations of Select Medical, and Welsh, Carson, Anderson & Stowe will acquire all of the outstanding shares of common stock of Select Medical not already owned by the Consortium for a price per share of $16.50 in cash, representing an enterprise value of $3.9B, on the terms and subject to the conditions set forth in the Merger Agreement. The Merger Agreement was unanimously approved by the disinterested members of the Board of Directors of Select Medical upon the recommendation of a special committee of disinterested and independent directors, which negotiated the terms of the transaction. The merger is expected to close mid 2026 and is not subject to a financing condition. Upon completion of the Merger, Select Medical will become a privately held company, and its shares of common stock will be deregistered under applicable rules of the SEC and no longer be listed on the New York Stock Exchange.