Select Medical Corp., a subsidiary of Select Medical Holdings Corp., has agreed to pay $400 million to purchase Physiotherapy Associates Holdings.
The cash deal is expected to close by the second quarter following successful antitrust clearance by the government, Select Medical said Monday.
Mechanicsburg, Pa.-based Select Medical, one of the largest U.S. operators of specialty hospitals and outpatient rehabilitation clinics, will add more than 500 medical facilities nationwide through the merger with Physiotherapy. Physiotherapy is a national provider of outpatient physical rehab care, including general orthopedics, spinal and neurological rehab as well as orthotics and prosthetics services.
As of Sept. 30, Select operated 110 long-term acute-care hospitals, 17 acute medical rehab hospitals and 1,033 outpatient rehab clinics in 31 states.
Early last year, insurer Humana sold Concentra, its occupational medicine and wellness arm, for more than $1.05 billion in cash to Select Medical and private equity firm Welsh, Carson, Anderson & Stowe.
Investor-owned Select plans to finance the Physiotherapy acquisition with cash on hand and the proceeds from a proposed $400 secured credit line. JP Morgan Chase has provided Select with a debt commitment letter, Select said in a regulatory filing.