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Select Medical to buy Concentra for $1.055B
Larry Portzline//March 23, 2015//
Listen to this articleConcentra, a subsidiary of Humana Inc. based in Amarillo, Texas, operates more than 300 medical centers and 170 on-site clinics in 40 states, including urgent care centers in Harrisburg, Mechanicsburg, Lancaster and York.
Select Medical is one of the nation’s largest providers of specialized acute and post-acute care, with more than 31,000 employees, 113 long-term acute care hospitals, 16 inpatient rehabilitation facilities and 1,023 outpatient rehabilitation clinics in 41 states and the District of Columbia. It also provides medical rehabilitation services on a contracted basis to nursing homes, hospitals, assisted living and senior care centers, schools and work sites.
In July 2014, Select Medical announced a joint venture with Harrisburg-based PinnacleHealth System to co-own a rehabilitation hospital and 23 outpatient clinics that provide physical therapy and related services in Central Pennsylvania.
Select created MJ Acquisition Corp. with Welsh, Carson, Anderson & Stowe XII LP of New York. Select and WCAS will own 50.1 percent and 49.9 percent, respectively, of MJ Acquisition Corp.
For all of the outstanding stock of Concentra, MJ Acquisition Corp. has agreed to pay a purchase price of $1.055 billion, subject to adjustments for net working capital and net debt on the closing date. The transaction, which is expected to close in the second quarter of 2015, is subject to customary closing conditions, including clearance under the Hart-Scott-Rodino Antitrust Improvements Act of 1976, as amended.
Edwin Bodensiek, Select’s vice president of communications and branding, said in a written statement on Monday, “This is an exciting opportunity to expand our outpatient business segment. Like Select Medical, Concentra is a national health care company that delivers a wide range of medical services to employers and patients. We believe we are a great fit for each other.”
