MJ Acquisition Corp, a joint venture between Select Medical Corp and Welsh, Carson & Stowe XII LP, has agreed to buy health care company Concentra Inc for $1.055 billion. The seller is Humana. The transaction is expected to be completed in the second quarter of this year.
MECHANICSBURG, Pa., March 23, 2015 /PRNewswire/ — Select Medical Corporation (“Select”) (NYSE: SEM) today announced that MJ Acquisition Corporation, a joint venture that Select has created with Welsh, Carson, Anderson & Stowe XII, L.P. (“WCAS”), has entered into a stock purchase agreement (the “Purchase Agreement”) as buyer with Concentra Inc. (“Concentra”) and Humana Inc. (“Humana”) to acquire all of the issued and outstanding equity securities of Concentra from Humana. Concentra, a subsidiary of Humana, is a national health care company that delivers a wide range of medical services to employers and patients, including urgent care, occupational medicine, physical therapy, primary care, and wellness programs. Concentra operates more than 300 medical centers and 170 onsite clinics in 40 states. Select and WCAS will own 50.1% and 49.9%, respectively, of MJ Acquisition Corporation.
For all of the outstanding stock of Concentra, MJ Acquisition Corporation has agreed to pay a purchase price of $1.055 billion, subject to adjustments for net working capital and net debt on the closing date. The transaction, which is expected to close in the second quarter of 2015, is subject to customary closing conditions, including clearance under the Hart-Scott-Rodino Antitrust Improvements Act of 1976, as amended.
Select Medical Corporation is a leading operator of specialty hospitals and outpatient rehabilitation clinics in the United States. As of December 31, 2014, Select Medical Corporation operated 113 long term acute care hospitals and 16 inpatient rehabilitation facilities in 28 states, and 1,023 outpatient rehabilitation clinics in 31 states and the District of Columbia. Select Medical Corporation also provides medical rehabilitation services on a contracted basis to nursing homes, hospitals, assisted living and senior care centers, schools and work sites. As of December 31, 2014, Select Medical Corporation had operations in 41 states and the District of Columbia. Information about Select Medical Corporation is available at http://www.selectmedicalcorp.com.