Select Medical Holdings Corp, Mechanicsburg, Pa, the parent of Select Medical Corp, plans to acquire all of the issued and outstanding equity securities of Regency Hospital Company LLC, Alpharetta, Ga, an operator of long-term acute care hospitals, for approximately $210 million, including certain assumed liabilities.
Regency is a portfolio company of Waud Capital Partners. The purchase price is subject to adjustment based on Regency’s net working capital on the closing date. Regency’s net revenue, income from operations, EBITDA (defined as earnings before interest, income taxes, depreciation, and amortization) and net income for the year ended December 31, 2009 was $374.9 million, $16.2 million, $27.7 million, and $6.2 million, respectively.
Regency operates a network of 23 long-term acute care hospitals, located in nine states. The transaction, which is expected to close in the third quarter of 2010, is subject to a number of closing conditions, including clearance under the Hart-Scott-Rodino Antitrust Improvements Act of 1976, as amended, and receipt of certain health care regulatory approvals. Upon completion of the transaction, Select will operate 112 long-term acute care hospitals in 28 states.
Select Medical Corp is among the leading operators of specialty hospitals and outpatient rehabilitation clinics in the United States. As of March 31, it operated 89 long-term acute care hospitals and six acute medical rehabilitation hospitals in 25 states, and 959 outpatient rehabilitation clinics in 36 states and the District of Columbia. The company also provides medical rehabilitation services on a contracted basis to nursing homes, hospitals, assisted living and senior care centers, schools, and work sites.
[Source: Select Medical]
