Dechert Advises Select Medical in US$3.9 Billion Take-Private Transaction

Dechert advised Select Medical Holdings Corporation on its pending US$3.9 billion take-private acquisition by a consortium led by Robert A. Ortenzio, Martin F. Jackson and Welsh, Carson, Anderson & Stowe (WCAS).

The deal represents a significant healthcare take-private transaction, with the merger consideration offering an approximately 18% premium over Select Medical's unaffected share price and approximately 25% over its 90-day volume-weighted average closing share price.

The disinterested members of Select Medical’s board unanimously approved the transaction upon recommendation of a special committee of independent directors, with closing expected mid-2026 subject to regulatory and stockholder approvals.

Select Medical is one of the largest operators of critical illness recovery hospitals, rehabilitation hospitals and outpatient rehabilitation clinics in the U.S., operating 104 critical illness recovery hospitals, 38 rehabilitation hospitals and 1,917 outpatient rehabilitation clinics across 39 states and the District of Columbia.

The Dechert team advising Select Medical was led by corporate and securities partners Stephen Leitzell, Michael Darby, Rick Horvath and Ani Ravi alongside global tax partner David Passey. The team also included corporate and securities associates Dillan Gomes, Nick Pullen, Rodrigo Rivera and Bryan Wilson; junior transactional associates Abigail Ferraioli, and Michael Beebe; global tax associate Ishani Kundu; employee benefits partner Kevin Kay with associates Tabitha Crosier and Sam Minter; intellectual property partner Thomas Rayksi with associate Frank Hwang; enforcement and investigations partner Hilary Bonaccorsi with associate James Smith; intellectual property senior counsel Timothy Blank; junior litigation associate Morgan Shields; labor partner J. Ian Downes with counsel Jeffrey Rubin; antitrust partner James Fishkin with counsels Beverly Ang and William Kearney; and corporate and securities partner Angelina Liang.

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