Select Medical’s $3.9 B Take-Private Deal at $16.50 Sparks 8.4% Rally
Select Medical agreed to be taken private at $16.50 per share in a $3.9 billion deal led by its executive chairman and senior vice president, boosting shares 8.4%. The company swung to $20.17 million net income from a $16.05 million loss and will pay a $0.0625 per-share dividend on March 12.
1. Executives Lead $3.9 B Take-Private Deal
Select Medical entered a definitive agreement for a $3.9 billion take-private transaction at $16.50 per share, led by Executive Chairman Robert Ortenzio and Senior Executive Vice President Martin Jackson. The board’s disinterested members unanimously approved the merger, with closing expected in mid-year pending shareholder and regulatory approvals.
2. Stock Reaction to Deal
Shares of Select Medical jumped 8.4% to $16.26, marking the sixth consecutive day of gains as investors reacted to the privatization announcement. Trading volume surged as market participants assessed the deal premium relative to recent trading levels.
3. 2025 Financial Results and Dividend
The company swung to $20.17 million in net income from a $16.05 million loss last year, supported by 7.7% revenue growth to $1.4 billion. Select Medical declared a $0.0625 per-share dividend with a record date of March 2 and a payment date of March 12.