Concentra Prepares to Pay $265M for Occupational Health Peer
The leaders of occupational health services company Concentra Group Holdings have signed an agreement to buy a regional chain that will grow its network of centers by nearly 10 percent.
Addison, Texas-based Concentra plans to play $265 million in cash and debt for U.S. Occmed Holdings, the parent company of Nova Medical Centers. Nova runs 67 sites in Texas, Georgia, Tennessee, Indiana and Wisconsin that provide workers’ compensation injury care as well as physical therapy, drug- and alcohol-screening services and pre-employment physical examinations. Concentra today runs 108 locations on Nova’s five states.
Nova was founded in Texas about three decades ago by Ulf Rohde—who is still its chairman—and now sees more than a million patients annually. Over the past 12 months, it has booked about $130 million in revenues and roughly $28 million in adjusted earnings before interest, depreciation and amortization.
“Nova’s key values mirror Concentra’s,” Concentra CEO Keith Newton said in a statement. “The cultural alliance between the two companies ensures Nova’s customers will continue to experience exceptional service and care delivered with a focus on quality clinical care and positive customer experiences.”
Concentra’s leaders expect to close on the acquisition later this quarter. Adding Nova’s network will grow the company’s network to more than 770 occupational health centers and onsite clinics in 42 states. The transaction is expected to immediately add to Concentra’s profit, even before forecasted cost savings from integrating all of Nova’s operations by mid-2026.
Alongside the acquisition news, executives issued 2025 forecasts (including Nova) of about $2.1 billion in revenue and adjusted EBITDA of around $415 million.
Newton and his team last summer took Concentra public by spinning out of Select Medical Holdings Corp. and raising more than $520 million. The company’s shares (Ticker: CON) have struggled to gain ground since then but investors liked the look of the Nova deal and fourth-quarter financials: Concentra stock rose more than 6 percent to $23.60 on Jan. 23, growing the company’s market capitalization to right about $3 billion.