The leaders of occupational well being companies firm Concentra Group Holdings have signed an settlement to purchase a regional chain that can develop its community of facilities by almost 10 p.c.
Addison, Texas-based Concentra plans to play $265 million in money and debt for U.S. Occmed Holdings, the mum or dad firm of Nova Medical Facilities. Nova runs 67 websites in Texas, Georgia, Tennessee, Indiana and Wisconsin that present employees’ compensation harm care in addition to bodily remedy, drug- and alcohol-screening companies and pre-employment bodily examinations. Concentra at this time runs 108 places on Nova’s 5 states.
Nova was based in Texas about three a long time in the past by Ulf Rohde—who continues to be its chairman—and now sees greater than one million sufferers yearly. Over the previous 12 months, it has booked about $130 million in revenues and roughly $28 million in adjusted earnings earlier than curiosity, depreciation and amortization.
“Nova’s key values mirror Concentra’s,” Concentra CEO Keith Newton stated in an announcement. “The cultural alliance between the 2 corporations ensures Nova’s clients will proceed to expertise distinctive service and care delivered with a give attention to high quality medical care and constructive buyer experiences.”
Concentra’s leaders count on to shut on the acquisition later this quarter. Including Nova’s community will develop the corporate’s community to greater than 770 occupational well being facilities and onsite clinics in 42 states. The transaction is predicted to instantly add to Concentra’s revenue, even earlier than forecasted value financial savings from integrating all of Nova’s operations by mid-2026.
Alongside the acquisition information, executives issued 2025 forecasts (together with Nova) of about $2.1 billion in income and adjusted EBITDA of round $415 million.
Newton and his staff final summer season took Concentra public by spinning out of Choose Medical Holdings Corp. and elevating greater than $520 million. The corporate’s shares (Ticker: CON) have struggled to achieve floor since then however traders favored the look of the Nova deal and fourth-quarter financials: Concentra inventory rose greater than 6 p.c to $23.60 on Jan. 23, rising the corporate’s market capitalization to proper about $3 billion.