Select Medical seeks to buy Regency hospitals for $210M

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Select Medical Holdings has signed a definitive agreement to acquire all of the issued and outstanding equity securities of Regency Hospital Company, an operator of long-term, acute-care hospitals, for approximately $210 million, including certain assumed liabilities.

Regency, which is a portfolio company of Waud Capital Partners, operates a network of 23 long-term, acute-care hospitals, located in nine states. Upon completion of the transaction, Select would operate 112 long-term, acute-care hospitals in 28 states.

The purchase price is subject to adjustment based on Regency’s net working capital on the closing date, according to the Mechanicsburg, Pa.-based Select Medical.

The transaction, which Select Medical expects to close in the third quarter of this year, is subject to a number of conditions, including clearance under the Hart-Scott-Rodino Antitrust Improvements Act of 1976, as amended, and receipt of certain healthcare regulatory approvals. As of March 31, Select Medical 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 Washington, D.C. Select Medical also provides medical rehabilitation services on a contracted basis to nursing homes, hospitals, assisted living and senior care centers, schools and work sites.