Select Medical Holdings' Sale Approved by Stockholders

By Greg Peters • Saturday, June 27 16:01 • Permanent Link

Select Medical Holdings’ stockholders approved the company’s sale to a consortium led by co-founder and Executive Chairman Robert A. Ortenzio, Senior Executive Vice President Martin F. Jackson, and Welsh, Carson, Anderson & Stowe.

At a special meeting on June 26, 2026, about 82.54% of Select Medical’s outstanding shares were voted. The merger received support from more than 79.88% of all outstanding shares and more than 76.64% of shares held by stockholders not affiliated with the consortium.

Select Medical said it expects the transaction to close in mid-2026, pending the remaining terms and conditions of the merger agreement.

The company also laid out the advisory lineup tied to the deal’s financing and execution. J.P. Morgan and Wells Fargo are serving as joint lead arrangers and joint lead bookrunners for the committed debt financing. Goldman Sachs is the exclusive financial advisor to the special committee of independent directors, while Skadden Arps is legal counsel to that committee. Dechert is advising Select Medical. On the buyer side, Wells Fargo and J.P. Morgan are financial advisors, Cravath is legal counsel to the consortium, Barclays is advising WCAS, and Ropes & Gray is legal counsel to WCAS. Paul Hastings is advising the debt financing sources.

Select Medical said that as of March 31, 2026, it operated 103 critical illness recovery hospitals in 28 states, 41 rehabilitation hospitals in 15 states, and 1,912 outpatient rehabilitation clinics across 37 states and the District of Columbia, giving it operations in 38 states and the District of Columbia overall. The market has reacted to these announcements by moving the company's shares -0.3% to a price of $16.50. For the full picture, make sure to review SELECT MEDICAL HOLDINGS CORP's 8-K report.

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