Select Medical Completes Acquisition, Ceases Trading
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 4 days ago
0mins
Select Medical announced the completion of its acquisition by an entity affiliated with a consortium led by Robert Ortenzio, Executive Chairman, Co-Founder and Director of Select Medical, Martin Jackson, Senior Executive Vice President of Strategic Finance and Operations of Select Medical, and Welsh, Carson, Anderson & Stowe, pursuant to the terms of the Agreement and Plan of Merger, dated as of March 2. The company filed a Certificate of Merger, pursuant to which the acquisition will become effective as of July 1 at 12:01 am. With the completion of the acquisition, Select Medical's common stock will cease trading and Select Medical will no longer be listed on the New York Stock Exchange as of July 1. The Consortium maintains effective and operational control of the company and its subsidiaries and now has a majority of the economic interest in the company.
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Analyst Views on SEM
Wall Street analysts forecast SEM stock price to rise
4 Analyst Rating
4 Buy
0 Hold
0 Sell
Strong Buy
Current: 16.510
Low
17.00
Averages
18.75
High
21.00
Current: 16.510
Low
17.00
Averages
18.75
High
21.00
About SEM
Select Medical Holdings Corporation operates critical illness recovery hospitals, rehabilitation hospitals, and outpatient rehabilitation clinics in the United States. Its segments include Critical Illness Recovery Hospital, Rehabilitation Hospital, and Outpatient Rehabilitation. Critical Illness Recovery Hospital segment consists of hospitals designed to serve the needs of patients recovering from critical illnesses, often with complex medical needs. It operates the majority of its critical illness recovery hospitals as a hospital within a hospital (an HIH). Rehabilitation Hospital segment serves patients that require intensive physical rehabilitation care. Outpatient Rehabilitation segment consists of clinics that provide physical, occupational, and speech rehabilitation services. It operates around 105 critical illness recovery hospitals in 29 states, 36 rehabilitation hospitals in 14 states, and 1,922 outpatient rehabilitation clinics in 39 states and the District of Columbia.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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- Timing of Changes: These changes will take effect prior to the market open, marking a dynamic adjustment to the S&P SmallCap 600 Index aimed at maintaining its representativeness and market relevance, ensuring investors have access to the latest market information.
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- High Voting Participation: Approximately 82.54% of outstanding shares were voted at the special meeting, reflecting significant shareholder engagement and support for the company's strategic direction, which enhances the likelihood of successful integration post-merger.
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- Merger Agreement Approved: On June 26, 2026, Select Medical's special meeting saw over 79.88% of shareholders vote in favor of the merger agreement with a consortium led by Robert A. Ortenzio, reflecting strong shareholder confidence in the company's future direction.
- High Voting Participation: Approximately 82.54% of outstanding shares were voted at the special meeting, indicating significant shareholder engagement and support for the merger, which enhances the likelihood of successful integration post-merger.
- Expected Merger Timeline: Select Medical anticipates closing the merger by mid-2026, which, if successful, will strengthen the company's market competitiveness and resource integration capabilities, facilitating business expansion.
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See More
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- Executive Conflict of Interest: The merger agreement allows Select Medical's co-founder and executives to
See More
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- Merger Investigation: Halper Sadeh LLC is investigating the merger between Brink's Company and NCR Atleos Corporation, where Brink's shareholders are expected to own approximately 78% of the combined entity, potentially impacting shareholder rights and future earnings.
- Cash Acquisition Proposal: Select Medical Holdings Corporation is being sold to a consortium led by its executives and directors for $16.50 per share in cash, which could significantly affect the financial interests of its shareholders.
- Shareholder Rights Protection: Halper Sadeh LLC encourages Brink's and NCR shareholders to contact them to discuss their legal rights and options, indicating a strong commitment to protecting investor interests that may lead to increased transaction compensation or additional disclosures.
- Legal Fee Arrangement: The law firm promises to handle related matters on a contingent fee basis without upfront costs, reducing legal risks for shareholders and enhancing their willingness to participate in the investigation.
See More
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- New Addition: On July 1, 2026, Gulfport Energy (Ticker: GPORE) will be added to the S&P SmallCap 600 Index, indicating recognition in the energy sector and likely attracting increased investor interest in its market performance.
- Removal of Company: On the same day, Select Medical Holdings (Ticker: SEM) will be removed from the S&P SmallCap 600 Index, which may negatively impact its stock price, reflecting market concerns about its future growth potential.
- New Addition: On July 2, 2026, Mobility Global (Ticker: MBGL) will join the S&P SmallCap 600 Index, signaling growth potential in the industrial sector, which could enhance its market visibility and investment appeal.
- Removal of Company: On the same day, Core Laboratories (Ticker: CLB) will be removed from the S&P SmallCap 600 Index, potentially leading to decreased liquidity and reflecting market caution regarding its business outlook.
See More
Changes to S&P SmallCap 600 Index Components Announced
- Component Changes: The S&P SmallCap 600 Index will see Gulfport Energy (Ticker: GPOR) replace Select Medical Holdings (Ticker: SEM) effective July 1, 2026, as the latter is being acquired, highlighting market focus on small-cap liquidity.
- Industry Dynamics: Mobility Global (Ticker: MBGL) will join the S&P SmallCap 600 Index on July 2, 2026, replacing Core Laboratories (Ticker: CLB), which is removed for no longer representing the small-cap market, reflecting structural changes in the industry and investor interest in emerging companies.
- Timing of Changes: These changes will take effect prior to the market open, marking a dynamic adjustment to the S&P SmallCap 600 Index aimed at maintaining its representativeness and market relevance, ensuring investors have access to the latest market information.
- Market Impact: The adjustments to these components not only affect the stock performance of the involved companies but may also prompt investors to reassess their investment strategies in the small-cap market, further driving market liquidity and activity.
See More
Select Medical Merger Agreement Approved by Shareholders
- Merger Agreement Approved: On June 26, 2026, Select Medical's special shareholder meeting saw over 79.88% approval for the merger agreement with a consortium led by Robert A. Ortenzio, indicating strong shareholder confidence and an expected mid-2026 closing.
- High Voting Participation: Approximately 82.54% of outstanding shares were voted at the special meeting, reflecting significant shareholder engagement and support for the company's strategic direction, which enhances the likelihood of successful integration post-merger.
- Strong Advisory Team: J.P. Morgan and Wells Fargo are serving as joint lead arrangers for the consortium's debt financing, while Goldman Sachs acts as the exclusive financial advisor, underscoring a solid financial foundation that will facilitate the merger process.
- Enhanced Market Position: As one of the largest operators of critical illness recovery hospitals in the U.S., the merger is expected to further solidify Select Medical's market position in the healthcare sector, likely improving operational efficiency and profitability through economies of scale and resource integration.
See More
Select Medical Merger Agreement Approved by Shareholders
- Merger Agreement Approved: On June 26, 2026, Select Medical's special meeting saw over 79.88% of shareholders vote in favor of the merger agreement with a consortium led by Robert A. Ortenzio, reflecting strong shareholder confidence in the company's future direction.
- High Voting Participation: Approximately 82.54% of outstanding shares were voted at the special meeting, indicating significant shareholder engagement and support for the merger, which enhances the likelihood of successful integration post-merger.
- Expected Merger Timeline: Select Medical anticipates closing the merger by mid-2026, which, if successful, will strengthen the company's market competitiveness and resource integration capabilities, facilitating business expansion.
- Strong Advisory Team: With J.P. Morgan and Wells Fargo serving as joint lead arrangers and Goldman Sachs as the exclusive financial advisor, the robust financial backing for the merger enhances market confidence in its successful execution.
See More
Investigation Launched into Select Medical's Merger Deal
- Merger Investigation: Bleichmar Fonti & Auld LLP is investigating whether Select Medical Holdings Corporation's board and senior management breached their fiduciary duties to shareholders in connection with the company's pending sale at $16.50 per share, potentially impacting shareholder interests.
- Shareholder Voting Schedule: The merger has been approved by a special committee of Select Medical's board, with the shareholder vote set for June 26, 2026, which could limit shareholders' ability to investigate the fairness of the deal if approved.
- Executive Conflict of Interest: The merger agreement allows Select Medical's co-founder and executives to
See More
Investor Rights Law Firm Investigates Merger Transactions
- Merger Investigation: Halper Sadeh LLC is investigating the merger between Brink's Company and NCR Atleos Corporation, where Brink's shareholders are expected to own approximately 78% of the combined entity, potentially impacting shareholder rights and future earnings.
- Cash Acquisition Proposal: Select Medical Holdings Corporation is being sold to a consortium led by its executives and directors for $16.50 per share in cash, which could significantly affect the financial interests of its shareholders.
- Shareholder Rights Protection: Halper Sadeh LLC encourages Brink's and NCR shareholders to contact them to discuss their legal rights and options, indicating a strong commitment to protecting investor interests that may lead to increased transaction compensation or additional disclosures.
- Legal Fee Arrangement: The law firm promises to handle related matters on a contingent fee basis without upfront costs, reducing legal risks for shareholders and enhancing their willingness to participate in the investigation.
See More
