Select Medical Holdings agreed on 2 March to be acquired by a consortium led by co-founder Robert A. Ortenzio, senior executive Martin F. Jackson and private equity firm Welsh, Carson, Anderson & Stowe for $16.50 per share in cash, an enterprise value of about $3.9bn.
Why Welsh, Carson, Anderson & Stowe, Robert A. Ortenzio and Martin F. Jackson is buying Select Medical Holdings Corporation
The consortium is buying all shares it does not already own in the Mechanicsburg, Pennsylvania-based operator of critical illness recovery and rehabilitation hospitals and outpatient clinics, including NovaCare. Current management is expected to remain in place after closing.
Deal terms and financing
The price is an 18% premium to the unaffected share price on 24 November 2025, the last trading day before Ortenzio's proposal was disclosed, and 25% above the 90-day volume-weighted average. Ortenzio, Jackson and certain affiliates, holding about 11.8% of the stock, will roll over their equity. The deal carries committed debt financing from J.P. Morgan and Wells Fargo and no financing condition, and was recommended by a special committee of independent directors.
Regulatory approvals and timing
Completion required approval by a majority of votes cast by unaffiliated holders and expiry of the HSR waiting period, with closing expected in mid-2026. The Philadelphia Inquirer reported on 3 July 2026 that the sale had been completed that week.
Market context
Some shareholders argued the price undervalued the company: Glazer Capital and AQR Capital Management filed appraisal petitions in the Delaware Court of Chancery in August 2026, seeking more than the $16.50 per share paid.
