Concentra Group Holdings Parent, Inc. Announces Equity Purchase Agreement with Nova Medical Centers

Concentra Group Holdings Parent, Inc. (NYSE: CON) recently disclosed a significant development through an 8-K filing with the Securities and Exchange Commission. On January 22, 2025, the company revealed that its subsidiary, Concentra Health Services, Inc. (CHS), has entered into an equity purchase agreement with U.S. Occmed Holdings, LLC d/b/a Nova Medical Centers and other entities. The agreement entails the acquisition of all outstanding membership interests of Nova Medical Centers from the sellers, valuing the transaction at $265 million.

The acquisition, expected to close in the first quarter of 2025, is subject to customary closing conditions as outlined in the purchase agreement. The waiting period under the Hart-Scott-Rodino Antitrust Improvements Act of 1976 has already expired, and all major regulatory filings have been fulfilled.

CHS intends to finance the transaction using a mix of cash reserves, existing credit facilities, and new debt financing. However, should the purchase agreement be terminated due to specific conditions, a reverse termination fee of $10.6 million would be payable by CHS to the Sellers’ Representative.

While the details of the purchase agreement are summarized in the filing, the full agreement is provided as Exhibit 2.1 to the report. Additionally, a press release and a presentation were issued by the company on the same day, providing estimates on financial results for the quarter and fiscal year ended December 31, 2024.

Furthermore, the filing included forward-looking statements, cautioning investors that actual results may vary due to various factors and risks outlined in the company’s previous filings with the SEC.

Concentra’s proactive approach to this acquisition aligns with the company’s strategy of enhancing its operational reach and services within the healthcare industry. This move not only signifies a financial milestone but also underscores Concentra’s commitment to expanding its market presence and consolidating its position as a leading provider of occupational health services.

Investors are advised to refer to the detailed 8-K filing for comprehensive information regarding this significant transaction.

This article was generated by an automated content engine and was reviewed by a human editor prior to publication. For additional information, read Concentra Group Holdings Parent’s 8K filing here.

Concentra Group Holdings Parent Company Profile

Concentra Group Holdings Parent, Inc provides occupational health services in the United States. The company offers occupational and consumer health services, including workers’ compensation injury care, urgent care, clinical testing, preventative care, and employer services, as well as wellness programs through occupational health centers and onsite clinics.