Business
Select Medical goes private
NEWS IN BRIEF — Posted Nov. 8, 2004
Hospital operator Select Medical Corp. has reached an agreement to be acquired by a new company formed by an investment group in a deal valued at about $2.3 billion.
Under the agreement, Select Medical would become a privately held company and wholly owned subsidiary of EGL Holding Co., which was formed by an investment group led by the private equity investment firm Welsh, Carson, Anderson & Stowe. Select Medical shareholders not participating in the buyout would be offered $18 per share in cash, which is about 36% above the stock's recent average closing price of $13.28 per share.
Select, which operates 83 long-term acute care hospitals in 25 states along with scores of outpatient rehabilitation clinics, said it would continue to be run by its current management team and would remain headquartered in Mechanicsburg, Pa.
The deal is subject to stockholder approval and other conditions. It is expected to be completed in the first quarter of 2005.
Note: This item originally appeared at http://www.ama-assn.org/amednews/2004/11/08/bibf1108.htm.
