Co-founder Robert Ortenzio-led Consortium to Take Select Medical Private for $3.9 Billion

Select Medical Holdings Corporation (SEM) entered a merger agreement on March 2, 2026, to be taken private by a consortium led by its co-founder, Robert Ortenzio, in a deal valued at $3.9 billion.

Deal Structure:

An entity affiliated with a consortium led by Co-Founder Robert Ortenzio, Senior Executive Vice President of Strategic Finance and Operations, Martin Jackson, and Welsh, Carson, Anderson & Stowe (WCAS) will acquire all of the outstanding shares of common stock of Select Medical for a price per share of $16.5 in cash, representing a 10% premium from the stock’s last close.

Company Profile:

Select Medical is a U.S. healthcare services company that operates critical illness recovery hospitals, inpatient rehabilitation hospitals, outpatient rehabilitation clinics, and occupational health centers. It provides post-acute care, physical and occupational therapy, and workplace health services across multiple states.

WCAS is a U.S.-based private equity firm that invests in technology and healthcare companies. The firm has raised and managed funds totaling over $33 billion of committed capital.

Deal Details and Timeline:

In November last year, Select Medical received a non-binding indication of interest from Co-Founder Robert Ortenzio to acquire all of the outstanding shares for cash consideration of $16 to $16.2 per share. The stock was trading at $14.01 when the company started reviewing and evaluating the proposal.

Ortenzio and WCAS are considered “Permitted Holders” under some of Select Medical’s current loan agreements. So, Select Medical expects its current debt to stay in place after the merger is completed. This will help the consortium move forward with financing the transaction.

The merger is expected to close in mid-2026.

J.P. Morgan and Wells Fargo are acting as joint lead arrangers and joint lead bookrunners for the Consortium’s committed debt financing. Goldman Sachs is serving as the exclusive financial advisor to the Special Committee, with Skadden, Arps, Slate, Meagher & Flom as its legal counsel. Dechert is serving as legal counsel to Select Medical. Wells Fargo and J.P. Morgan are also acting as financial advisors to the Consortium, with Cravath, Swaine & Moore serving as its legal counsel. Barclays is serving as financial advisor to WCAS, and Ropes & Gray is serving as its legal counsel. Paul Hastings is acting as legal counsel to the debt financing sources.

The consortium is paying 10.89 times EBITDA for Select Medical.

Deal Metrics:

To get more information about this merger and acquisition transaction, visit the Deal Metrics page.

Deal Metrics for the acquisition of Select Medical Holdings Corporation (SEM) by a co-founder-led consortium

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• A spread history chart of the merger from announcement through completion or failure.
• Timeline of events as the merger progresses: HSR period expiration, various regulatory approvals, shareholder votes, etc.
• Access to news and SEC filings related to the merger.
• History of deal updates.
• And much more.

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Editor’s Note: Baranjot Kaur contributed to this article