Select Medical Holdings Corporation (NYSE: SEM), the parent of Select Medical Corporation, today announced the signing of a definitive agreement to acquire all of the issued and outstanding equity securities of Regency Hospital Company, L.L.C. ("Regency"), 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 (see attached reconciliation) and $6.2 million, respectively.
Regency operates a network of 23 long-term acute care hospitals, located in 9 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 healthcare regulatory approvals. Upon completion of the transaction, Select will operate 112 long term acute care hospitals in 28 states.
Select Medical Corporation is a leading operator of specialty hospitals and outpatient rehabilitation clinics in the United States. As of March 31, 2010, Select Medical Corporation 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. 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. Information about Select Medical Corporation is available at http://www.selectmedicalcorp.com.
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