Select Rehab Closes on RehabCare Acquisition from Kindred, Projects $1B in Revenue

Select Rehabilitation closed on its acquisition of Kindred Healthcare’s RehabCare business line, the Glenview, Ill.-based therapy company announced on Tuesday.

Terms of the deal were not disclosed; the acquisition was originally announced on October 5.

Select’s pro-forma revenues exceed $1 billion, according to the therapy provider, which employs 17,000 therapists in 43 states.


Kindred used to have significant holdings in the skilled nursing space, but left the sector in 2017 with a $700 million transaction to sell its SNF line to BM Eagle Holdings, a joint venture led by affiliates of BlueMountain Capital Management, a privately held New York-based alternative asset manager. That company is now known as Eagle Arc.

At the time of the RehabCare announcement in October, Kindred CEO and president Benjamin Breier indicated that the sale was a way to focus more on its new core business of higher-acuity post-acute services.

“Following the completion of the transaction, Kindred will remain the largest specialty hospital company in the United States, with a portfolio of long-term acute care hospitals, inpatient rehabilitation hospitals, acute rehabilitation units, and an emerging behavioral health line of business, all specializing in treating the most medically complex patients,” he said.


Kindred plans to open 20 new facilities — including rehab hospitals, acute rehab units, and behavioral health properties — through strategic partnerships over the coming two years.

“Kindred’s hospitals have been delivering specialized clinical, ventilator, and rehabilitation care for the sickest COVID patients as part of a coordinated community response with our strategic partners,” Breier said in a Tuesday release. “I am exceedingly proud of our dedicated caregivers across our settings for the important role they are playing in responding to this crisis.”

The RehabCare acquisition positions Select to “leverage its proprietary technology solutions beyond the contract therapy sector,” according to the press release announcing the close of the transaction.

Truist Securities served as the financial advisor for Select on the acquisition; Katten Muchin Rosenman LLP served as legal adviser. Truist, BBVA Securities, Fifth Third Bank, provided financing.

The deal is Select’s eighth strategic acquisition in as many years, according to the press release.

“We are thrilled to welcome RehabCare’s experienced leadership and dedicated therapy teams to the Select family,” Select’s CEO and co-founder, Anna Gardina Wolfe, said in the release. “Their addition solidifies our best-in-class reputation throughout the U.S. and expands our mission to provide compliant-driven, outcome-focused patient care. We are honored to develop relationships with our new facility partners, and to introduce our state-of-the-art, technology-driven platforms that enhance patient care and deliver data-driven performance analytics.”

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