Select Medical Enters Definitive Agreement for $3.9B Take-Private Acquisition at $16.50/Share
SEM sits 40% above its 52-week low of $11.65.
Summary
Select Medical Holdings Corporation has signed a definitive merger agreement to be taken private by a consortium for $16.50 per share in cash, a deal valued at $3.9 billion, with no financing condition.
Key Events · M&A and Partnerships · SEM
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Definitive Merger Agreement Signed
Select Medical Holdings Corporation entered into a definitive Agreement and Plan of Merger to be acquired by a consortium led by its Executive Chairman and Welsh, Carson, Anderson & Stowe.
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Acquisition Price and Premium
Unaffiliated stockholders will receive $16.50 per share in cash, a premium of approximately 18% over the unaffected share price as of November 24, 2025. The transaction has an enterprise value of $3.9 billion.
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Take-Private by Consortium
The acquisition is a take-private transaction, with Executive Chairman Robert A. Ortenzio, Martin F. Jackson, and certain affiliates rolling over their equity instead of receiving cash. These Rollover Participants beneficially own approximately 11.8% of outstanding shares and will vote in favor of the merger.
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No Financing Condition
The merger is not subject to a financing condition, as the consortium has secured committed equity and debt financing, providing high certainty of closing.
Analysis · SEM · Industrial Applications And Services
Select Medical Holdings Corporation has entered into a definitive Agreement and Plan of Merger to be acquired by a consortium led by its Executive Chairman, Robert A. Ortenzio, and Welsh, Carson, Anderson & Stowe. This formalizes the previously announced non-binding take-private offer. Shareholders will receive $16.50 per share in cash, representing a premium of approximately 18% over the unaffected share price as of November 24, 2025. The transaction, valued at an enterprise value of $3.9 billion, is not subject to a financing condition, significantly de-risking the deal. The Special Committee of independent directors and the disinterested members of the Board unanimously approved the merger, deeming it fair to unaffiliated stockholders. Upon completion, Select Medical will become a privately held company, and its shares will be delisted from the NYSE.
At the time of this filing, SEM was trading at $16.29 on NYSE in the Industrial Applications And Services sector, with a market capitalization of approximately $1.9B. The 52-week trading range was $11.65 to $18.61. This filing was assessed with positive market sentiment and an importance score of 9 out of 10.