M&A Deal Summary

Cressey and Welsh Carson Anderson & Stowe Acquire Select Medical

On October 18, 2004, private equity firms Cressey and Welsh Carson Anderson & Stowe acquired healthcare services company Select Medical for 2.3B USD

Acquisition Highlights
  • This is Cressey’s 2nd and Welsh Carson Anderson & Stowe’s 13th transaction in the Healthcare Services sector.
  • This is Cressey’s and Welsh Carson Anderson & Stowe’s 4th largest (disclosed) transaction.
  • This is Cressey’s 3rd and Welsh Carson Anderson & Stowe’s 29th transaction in the United States.
  • This is Cressey’s 1st and Welsh Carson Anderson & Stowe’s 4th transaction in Pennsylvania.
Investment Fate
  • Select Medical went public in 2009.

M&A Deal Summary

Date 2004-10-18
Target Select Medical
Sector Healthcare Services
Buyer(s) Cressey
Welsh Carson Anderson & Stowe
Deal Type Going Private
Deal Value 2.3B USD

Target

Select Medical

Mechanicsburg, Pennsylvania, United States
website
Select Medical is an operator of acute care hospitals, medical rehabilitation hospitals. Select Medical Holdings was founded in 1996 and is based in Mechanicsburg, Pennsylvania.

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Buyer(S) 2

Buyer

Cressey

Chicago, Illinois, United States

Investor Investor Investor Investor Investor

website


Category Private Equity Firm
PE ASSETS 1.0B USD
Size Large
Type Sector Focused
DESCRIPTION

Cressey & Company LP is a specialist private equity investment firm focused on buy-and-build opportunities in the healthcare sector. The firm invests in the range of $10 - $100 million and EBITA of at least $5 million. The firm specific areas of interest include hospitals, homecare, outpatient services, and specialty distribution. Types of transaction include buyout, growth and recapitalization. It also seeks controlling interest. Cressey & Company has offices in Chicago, Illinois and Nashville, Tennessee.


DEAL STATS #
Overall 4 of 33
Sector (Healthcare Services) 2 of 16
Type (Going Private) 1 of 1
State (Pennsylvania) 1 of 2
Country (United States) 3 of 32
Year (2004) 2 of 3
Size (of disclosed) 1 of 2
PREVIOUS DEAL
DATE TARGET DEAL TYPE VALUE
2004-03-24 Jazz Pharmaceuticals

Dublin 4, Ireland

Jazz Pharmaceuticals is a specialty biopharmaceutical company that identifies, develops and commercializes products to address unmet medical needs in focused therapeutic areas. Jazz Pharmaceuticals was founded in 2003 and is based in Dublin, Ireland.

Buy -
FOLLOWING DEAL
DATE TARGET DEAL TYPE VALUE
2004-12-29 Continuing Care Rx

Harrisburg, Pennsylvania, United States

Continuing Care Rx, Inc. is a privately owned institutional pharmacy provider.

Buy -
Buyer

Welsh Carson Anderson & Stowe

New York, New York, United States

Investor Investor Investor Investor Investor

website


Category Private Equity Firm
Founded 1979
PE ASSETS 27.0B USD
Size Mega
Type Sector Focused
DESCRIPTION

Welsh Carson Anderson & Stowe (WCAS) is a mega-sized, specialist private equity firm focused on investments in growth-oriented companies operating within the healthcare and technology/tech-enabled services industries. WCAS will consider small and large transactions; including venture investments, growth equity investments, buy-and-build transactions, public-to-private acquisitions, and corporate carve-outs. The Firm prefers control situations and generally seeks opportunities in the US. Welsh Carson Anderson & Stowe was formed in 1979 and is based in New York City.


DEAL STATS #
Overall 30 of 97
Sector (Healthcare Services) 13 of 32
Type (Going Private) 3 of 7
State (Pennsylvania) 4 of 6
Country (United States) 29 of 92
Year (2004) 2 of 4
Size (of disclosed) 4 of 20
PREVIOUS DEAL
DATE TARGET DEAL TYPE VALUE
2004-07-21 Dex Media

Dallas, Texas, United States

Dex Media, Inc. engages in the publication and marketing of directories in the US. The company also offers Internet-based telephone directory and database marketing services.

Sell -
FOLLOWING DEAL
DATE TARGET DEAL TYPE VALUE
2004-10-20 Westminster Health Care

Horsham, United Kingdom

From its origins in 1985, Westminster Health Care evolved to become one of the major providers of high quality healthcare services to both the private and public sectors in the UK.

Sell £525M