Mar. 3 at 4:51 PM
Select Medical shares rose 8% after the company agreed to be acquired by a consortium led by Executive Chairman Robert A. Ortenzio, Senior EVP Martin F. Jackson, and private equity firm Welsh, Carson, Anderson & Stowe. The group will purchase all outstanding shares not already owned for
$16.50 per share in cash, valuing the company at approximately
$3.9 billion in enterprise value.
The offer represents an 18% premium to the November 24, 2025 closing price and a 25% premium to the 90-day volume-weighted average price. The merger agreement was unanimously approved by disinterested board members following a recommendation from a special committee of independent directors. Certain insiders, who collectively own about 11.8% of outstanding shares, have agreed to roll over their stakes rather than receive cash.
The transaction is expected to close in mid-2026, subject to shareholder and regulatory approvals, including Hart-Scott-Rodino clearance.
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