Concentra Announces Completion of Spin-Off from Select Medical

Rhea-AI Summary

Concentra (NYSE: CON) announced the completion of its spin-off from Select Medical through the distribution of 104,093,503 shares, representing 81.7% of Concentra's outstanding common stock. Select Medical stockholders received 0.806971 Concentra shares for each Select Medical share held as of November 18, 2024. Concentra, the largest U.S. occupational health services provider, operates 549 health centers and 156 onsite clinics across 45 states, serving over 50,000 patients daily with 11,000 colleagues and affiliated medical professionals.

Positive

• Market leader in U.S. occupational health services
• Extensive network of 705 facilities across 45 states
• Large patient base of 50,000+ daily patients
• Strong workforce of 11,000 healthcare professionals

Negative

• None.

Insights

Corporate Finance Expert

The spin-off of Concentra from Select Medical represents a significant corporate restructuring that creates two distinct publicly traded entities. The distribution ratio of 0.806971 Concentra shares for each Select Medical share effectively transfers 81.7% ownership directly to Select Medical's shareholders. This transaction enhances strategic flexibility for both companies and allows them to pursue independent growth strategies.

With 549 occupational health centers and 156 onsite clinics, Concentra now stands as an independent entity with substantial market presence in the occupational health services sector. The spin-off could potentially unlock shareholder value by allowing the market to value Concentra's business separately from Select Medical's other operations. Investors should monitor how the market prices this pure-play occupational health services provider and its growth trajectory as a standalone company.

Healthcare Industry Analyst

As the largest U.S. occupational health services provider, Concentra's independence positions it to capitalize on the growing workplace healthcare market. The company's extensive network serving 50,000 daily patients across 45 states provides a robust foundation for expansion. The integration of Concentra Telemed demonstrates adaptation to modern healthcare delivery methods, potentially driving operational efficiency and market reach.

The company's direct-to-employer care model and comprehensive service suite create multiple revenue streams and competitive advantages in the occupational health sector. This positioning is particularly relevant as workplace health services become increasingly important for employee retention and risk management.

ADDISON, Texas--(BUSINESS WIRE)-- Concentra Group Holdings Parent, Inc. (“Concentra,” “we,” “us,” or “our”) (NYSE: CON) today announced that Select Medical Holdings Corporation (“Select Medical”) (NYSE: SEM) has completed its previously announced distribution (the “Distribution”) of 104,093,503 shares of Concentra’s common stock owned by Select Medical Corporation (“SMC”), a wholly owned subsidiary of Select Medical, representing approximately 81.7% of the outstanding shares of Concentra’s common stock. After the completion of the Distribution, Select Medical no longer owns any shares of Concentra’s common stock.

The Distribution was made today to Select Medical’s stockholders as of the close of business on November 18, 2024 (the “Record Date”). The Distribution took place in the form of a pro rata common stock distribution to each of Select Medical’s stockholders on the Record Date. Based on the shares of Select Medical’s common stock outstanding on the Record Date, Select Medical’s stockholders received 0.806971 shares of Concentra’s common stock for every share of Select Medical’s common stock held as of the Record Date.

No fractional shares of Concentra’s common stock were distributed. Instead, Select Medical’s stockholders will receive cash in lieu of any fraction of a share of Concentra’s common stock that they otherwise would have received.

On November 19, 2024, Select Medical made available an information statement to its stockholders on the Record Date, which included details on the Distribution. The information statement is posted under the Investor Relations tab on Select Medical’s website at www.selectmedical.com/investor-relations/.

About Concentra

Concentra is the largest provider of occupational health services in the United States by number of locations, with the mission of improving the health of America’s workforce, one patient at a time. Concentra’s 11,000 colleagues and affiliated physicians and clinicians support the delivery of an extensive suite of services, including occupational and consumer health services and other direct-to-employer care, to more than 50,000 patients each day on average across 45 states at our 549 occupational health centers, 156 onsite health clinics at employer worksites, and Concentra Telemed as of September 30, 2024.

This press release may contain forward-looking statements based on current management expectations. Numerous factors, including those related to market conditions and those detailed from time-to-time in Concentra’s filings with the Securities and Exchange Commission, may cause results to differ materially from those anticipated in the forward-looking statements. Many of the factors that will determine Concentra’s future results are beyond the ability of Concentra to control or predict. These statements are subject to risks and uncertainties and, therefore, actual results may differ materially. Readers should not place undue reliance on forward-looking statements, which reflect management’s views only as of the date hereof. Concentra undertakes no obligation to revise or update any forward-looking statements, or to make any other forward-looking statements, whether as a result of new information, future events or otherwise.

View source version on businesswire.com: https://www.businesswire.com/news/home/20241125422840/en/

Investor inquiries:

Bill Chapman

Vice President, Strategy & Investor Relations

972-725-6488

ir@concentra.com

Source: Concentra Group Holdings Parent, Inc.

FAQ

How many Concentra (CON) shares were distributed in the Select Medical spin-off?

104,093,503 shares of Concentra's common stock, representing approximately 81.7% of outstanding shares, were distributed.

What was the distribution ratio for Concentra (CON) shares in the November 2024 spin-off?

Select Medical stockholders received 0.806971 shares of Concentra stock for every share of Select Medical stock held as of November 18, 2024.

How many healthcare facilities does Concentra (CON) operate as of September 2024?

Concentra operates 549 occupational health centers and 156 onsite health clinics at employer worksites across 45 states.

How many patients does Concentra (CON) serve daily?

Concentra serves more than 50,000 patients each day on average across its facilities.