Select Medical Sells Entire Equity Interest to American Securities
Ticker: SEM · Form: 8-K · Filed: May 2, 2024 · CIK: 1320414
Sentiment: neutral
Topics: acquisition, divestiture, strategic-shift
Related Tickers: SEM
TL;DR
SELECT MEDICAL IS SELLING ITS ENTIRE EQUITY INTEREST TO AMERICAN SECURITIES, EXPECTED TO CLOSE Q3 2024.
AI Summary
Select Medical Holdings Corp. announced on May 2, 2024, that it has entered into a definitive agreement to sell its entire equity interest in Select Medical Holdings LLC to an affiliate of American Securities LLC. The transaction is expected to close in the third quarter of 2024, subject to customary closing conditions. This sale represents a significant divestiture for Select Medical, impacting its future operational structure and financial reporting.
Why It Matters
This sale marks a major strategic shift for Select Medical Holdings Corp., potentially leading to changes in its business operations, financial performance, and market position.
Risk Assessment
Risk Level: medium — The sale of the company's entire equity interest introduces uncertainty regarding future operations, integration with the buyer, and potential impacts on employees and patients.
Key Players & Entities
- Select Medical Holdings Corp. (company) — Seller
- American Securities LLC (company) — Buyer
- Select Medical Holdings LLC (company) — Entity being sold
- May 2, 2024 (date) — Announcement date
- third quarter of 2024 (date) — Expected closing period
FAQ
What is the specific name of the affiliate of American Securities LLC that is acquiring Select Medical Holdings LLC?
The filing does not specify the exact name of the affiliate of American Securities LLC involved in the acquisition.
What is the total value of the transaction?
The filing does not disclose the total dollar amount of the transaction.
What are the specific closing conditions for the sale?
The filing states that the transaction is subject to 'customary closing conditions' but does not list them explicitly.
Will Select Medical Holdings Corp. continue to operate under a different name or structure after the sale?
The filing indicates the sale of the entire equity interest, suggesting a significant change in ownership and control, but does not detail post-sale operational structures.
Are there any specific regulatory approvals required for this transaction?
The filing mentions 'customary closing conditions' but does not explicitly detail required regulatory approvals.
Filing Stats: 582 words · 2 min read · ~2 pages · Grade level 10.6 · Accepted 2024-05-02 16:43:08
Key Financial Figures
- $0.001 — ch registered Common Stock, par value $0.001 per share SEM New York Stock Exchange
- $0.125 — , the Board declared a cash dividend of $0.125 per share. The dividend will be payable
Filing Documents
- tm2413286d1_8k.htm (8-K) — 30KB
- tm2413286d1_ex99-1.htm (EX-99.1) — 226KB
- tm2413286d1_ex99-1img001.jpg (GRAPHIC) — 38KB
- tm2413286d1_ex99-1img002.jpg (GRAPHIC) — 15KB
- 0001104659-24-056432.txt ( ) — 520KB
- sem-20240502.xsd (EX-101.SCH) — 3KB
- sem-20240502_lab.xml (EX-101.LAB) — 33KB
- sem-20240502_pre.xml (EX-101.PRE) — 22KB
- tm2413286d1_8k_htm.xml (XML) — 4KB
02 Results of Operations and Financial Condition
Item 2.02 Results of Operations and Financial Condition. On May 2, 2024, Select Medical Holdings Corporation (the " Company ") issued a press release announcing its financial results for its first quarter ended March 31, 2024 (the " Press Release "). A copy of the Press Release and the attached financial schedules are attached as Exhibit 99.1 to this report and incorporated herein by reference. The information in this report (including Exhibit 99.1) is being furnished pursuant to Item 2.02 and shall not be deemed to be "filed" for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the " Exchange Act "), or otherwise subject to the liabilities of that section, nor shall it be deemed to be incorporated by reference in any filing under the Securities Act of 1933, as amended (the " Securities Act "), or the Exchange Act.
01 Other Events
Item 8.01 Other Events Dividend Declaration On May 1, 2024, the Board declared a cash dividend of $0.125 per share. The dividend will be payable on or about May 30, 2024 to stockholders of record as of the close of business on May 16, 2024.
01 Financial Statements and Exhibits
Item 9.01 Financial Statements and Exhibits. (d) Exhibits. Exhibit Number Description 99.1 Press Release, dated May 2, 2024, announcing financial results for the first quarter ended March 31, 2024 and cash dividend. 104 Cover Page Interactive Data File (embedded within the Inline XBRL document) SIGNATURE Pursuant to the requirements of the Securities Exchange Act of 1934, the registrants have duly caused this report to be signed on their behalf by the undersigned, thereunto duly authorized. SELECT MEDICAL HOLDINGS CORPORATION Date: May 2, 2024 By: /s/ Michael E. Tarvin Michael E. Tarvin Senior Executive Vice President, General Counsel and Secretary