U.S. Physical Therapy Inc, a national operator of outpatient physical therapy clinics and provider of industrial injury prevention services, announces the acquisition of a 70% ownership interest in a leading provider of industrial injury prevention services.
The acquired company also provides and manages inpatient and outpatient physical therapy services to hospitals and their respective ancillary units.
The business provides human performance solutions, combining ergonomic, injury prevention, physical rehabilitation, onsite medical and performance maximization services to its clients, many of which are Fortune 500 companies. The business generates approximately $27.0 million in annual revenue at a margin of approximately 20%; in addition, it has approximately $1.7 million in pretax earnings related to the acquired company’s 49% ownership interest in a joint venture providing physical therapy services to hospitals and their respective ancillary units. USPH acquired its interest in the acquired company at a purchase price of approximately $63.2 million.
The founders will continue to have a 30% ownership interest and maintain their roles as executive leaders in the acquired company; they also will continue to own a separate company that provides physical therapy and rehabilitation services to hospitals and other ancillary providers in a distinct market area. As part of the transaction, USPH and the founders agreed to the right to a future purchase of such company.
“We are happy to be kicking off this new partnership with a very talented team. This transaction provides our Company with an additional vehicle for continued growth in the industrial injury prevention market, expanding the scope of our target market and further growing our product continuum. These IIP services play a critical role in reducing musculoskeletal injuries in the workplace, enhancing employee engagement and, at a time when competition for employees is fierce, helping to create a better all-around workplace. Additionally and importantly, our new partners also have a strong service platform partnering with hospitals to manage and grow their rehabilitation opportunities.”— Chris Reading, Chief Executive Officer
“Today’s announced acquisition further diversifies our revenue into the industrial injury prevention services business and provides us with another excellent revenue growth engine. We used our revolving credit facility to accomplish the purchase, and simultaneously exercised its accordion feature to increase the limit on our facility from $125 million to $150 million.”— Carey Hendrickson, Chief Financial Officer
[Source(s): U.S. Physical Therapy Inc, Business Wire]