Consortium Led by Robert Ortenzio to Buy Select Medical in $3.9 Billion Deal
The all-cash take-private transaction is led by the company's executive chairman and private equity firm Welsh, Carson, Anderson & Stowe.
An entity affiliated with a consortium led by Robert A. Ortenzio, Martin F. Jackson, and Welsh, Carson, Anderson & Stowe (WCAS) completed its acquisition of Select Medical Holdings Corporation (SEM) in an all-cash transaction valued at approximately $3.9 billion.
The consortium paid $16.50 a share for the company. This price represented a premium of approximately 18% over Select Medical’s unaffected share price as of November 24, 2025, and a premium of approximately 25% over the company's 90-day volume-weighted average closing share price for the period ending on that date.
Select Medical is one of the largest U.S. operators of rehabilitation hospitals, critical illness recovery hospitals, and outpatient rehabilitation clinics. As of March 31, 2026, the company operated 103 critical illness recovery hospitals, 41 rehabilitation hospitals, and 1,912 outpatient rehabilitation clinics across 38 states and the District of Columbia.
Following the closing on July 1, 2026, Select Medical's common stock ceased trading on the New York Stock Exchange. The consortium now holds a majority of the economic interest in the company and maintains operational control. Current officers, including Mr. Ortenzio and Mr. Jackson, will continue to lead the business in their respective roles.
The transaction was approved by Select Medical's stockholders on June 26, 2026, with over 76.64% of the outstanding shares held by stockholders unaffiliated with the consortium voting in favor of the merger. The deal was unanimously approved by the disinterested members of the board upon the recommendation of a special committee of independent directors.
In connection with the merger, several directors ceased their roles, while Russell L. Carson, David S. Chernow, and Robert A. Ortenzio were named as directors of the company. J.P. Morgan and Wells Fargo served as joint lead arrangers and joint lead bookrunners for the consortium's committed debt financing.