Select Medical Holdings Corporation (NYSE: SEM) announced today it has entered into a merger agreement to acquire Physiotherapy Associates Holdings, Inc. for $400 million in cash. Physiotherapy is a national provider of outpatient physical rehabilitation care offering a wide range of services, such as general orthopedics, spinal care and neurological rehabilitation, and orthotics and prosthetics services.
As of September 30, 2015, Select operated 110 long term acute care hospitals and 17 acute medical rehabilitation hospitals in 28 states, and 1,033 outpatient rehabilitation clinics in 31 states and the District of Columbia.
This acquisition continues their growth. In 2015, Select formed a joint venture with Welsh, Carson, Anderson & Stowe and acquired Concentra Inc. for over $1 billion.
This acquisition will add more than 500 outpatient physical rehabilitation facilities to Select’s portfolio. It is estimated that Physiotherapy has annual revenues of approximately $250-275 million. The acquisition is expected to close in the first or second quarter of 2016.