Concentra expands with Pivot Onsite Innovations buy

Published 21/04/2025, 14:06
Concentra expands with Pivot Onsite Innovations buy

ADDISON, Texas - Concentra Group Holdings Parent, Inc. (NYSE: CON), a leading occupational health services provider with a market capitalization of $2.61 billion and annual revenue of $1.9 billion, has announced the acquisition of Pivot Onsite Innovations, a prominent player in the onsite health industry. According to InvestingPro data, the company maintains a healthy financial profile with an EBITDA of $374.53 million. This acquisition is set to double the size of Concentra’s onsite health segment, expanding its reach to over 350 onsite health clinics across more than 40 states.

The transaction, valued at $55 million subject to adjustments, is expected to close in the second quarter of 2025, pending customary closing conditions. Concentra plans to finance the purchase with cash on hand and available credit. The company’s strong financial position is reflected in its "GOOD" Financial Health Score on InvestingPro, which indicates robust operational performance and balance sheet strength.

Pivot Onsite Innovations has been delivering occupational health, wellness, prevention, and performance services for over two decades, and its integration into Concentra’s operations is anticipated to enhance service offerings for customers and create advancement opportunities for employees. Key members of Pivot’s executive team, including Founder and Chief Medical Officer Dr. Lawrence J. Goren, will join Concentra Onsite Health.

Mike Rhine, Executive Vice President, Chief Operating Officer of Onsite Health and Telemedicine at Concentra, emphasized the cultural alignment of the two companies and the commitment to maintain personal and meaningful relationships with employers and their employees. Rhine assured that the transition for Pivot’s clients would be seamless, with no disruption to current services.

Concentra is recognized as the premier provider of occupational health services, operating an extensive network of approximately 620 occupational health centers and more than 150 onsite health clinics. The addition of Pivot Onsite Innovations is expected to bolster the company’s mission to improve the health of America’s workforce, leveraging over 50 years of combined experience in the field.

The company is set to release its first-quarter financial results for the period ended March 31, 2025, on May 7, 2025, after the market closes. A conference call discussing the financial results will be held the following day. Currently trading at a P/E ratio of 14.81x with a strong free cash flow yield, analysts maintain a bullish outlook on the stock. For deeper insights into Concentra’s financial health and growth prospects, investors can access comprehensive analysis through InvestingPro’s detailed research reports, which are available for over 1,400 US stocks.

This strategic move by Concentra reflects its ongoing efforts to expand its services and reinforce its market position. The information provided is based on a press release statement from Concentra Group Holdings Parent, Inc.

In other recent news, Continental AG reported a 2.6% organic decline in revenue for the fourth quarter of 2024, reflecting a challenging year for the company. Despite this, Continental AG managed to improve its group adjusted EBIT margin and reduce its net debt from €4 billion to €3.7 billion. The company proposed a slight dividend increase to €2.50 per share. For 2025, Continental AG projects group revenue between €38-41 billion and an adjusted EBIT margin of €6.5-7.5 billion. The company also anticipates an adjusted free cash flow of €800-1,200 million, indicating confidence in its operational strategies. Additionally, Continental AG plans to spin off its Automotive division in the second half of the year, with preparations reportedly on track. The company is facing challenges such as flat global light vehicle production and regional market declines in Europe and North America, which could impact sales. Analyst discussions highlighted concerns over tariffs and semiconductor costs, which account for a significant portion of automotive sales.

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