Gryphon Investors, a middle-market private equity firm based in San Francisco, announces that it has acquired Carlsbad, Calif-based Physical Rehabilitation Network from Silver Oak Services Partners for an undisclosed amount.

Silver Oak will make an investment in the newly recapitalized company, and PRN’s management team will remain with the Company and retain an equity stake as well.

This transaction marks Gryphon’s third investment in the physical therapy category after successful earlier investments in Accelerated Rehabilitation and CORA Physical Therapy, according to a news release.

“We believe the physical therapy sector will experience more growth as active people age and require attention to injuries, but increasingly turn away from pharmaceutical treatment. At the same time, new regulations are improving patients’ direct access to care, making treatment faster and less administratively cumbersome. These drivers make continued investment in the sector attractive.” 

— Kevin Blank, Gryphon Operating Partner to Gryphon’s Healthcare Group

PRN, which operates 138 clinics in 12 states (CA, CO, ID, MN, MT, NV, NM, ND, OR, SD, TX and WA), offers a variety of physical therapy services including sports rehabilitation, balance training, hand therapy, aquatic therapy, industrial rehabilitation, and post-operative PT.

Current CEO Ajay Gupta will retain his position with the company, while Mitch Tannenbaum and Eric Warner, both former senior executives of Accelerated Rehabilitation and current board members at CORA, will serve in board roles.

“PRN has a unique joint venture business model that allows its physical therapist partners to share in the business’s upside while remaining deeply committed to providing top-quality care. Over the past few years, the Company has focused on accelerating strategic growth, including health system partnerships, and investing in a scalable infrastructure, while building a diversified payor mix and widening its geographic footprint. We see multiple avenues for continued organic and acquisitive growth for the PRN platform.”

— Luke Schroeder, Gryphon Deal Partner and Co-Head of Gryphon’s Healthcare Group

“We are extremely proud of our partnership with the PRN management team and the Company’s track record of growth. We are excited to reinvest in PRN, and believe the Company is well positioned to capitalize on its multidimensional growth strategy while continuing to provide exceptional quality of care.” 

— Dan Gill, Managing Partner at Silver Oak

“We look forward to this next chapter of growth with the Gryphon and Silver Oak teams to broaden our service offerings in the communities we serve, attract more patients, and further hone our partnership model. We have built our business by supporting our clinicians through focused efforts on training, compliance, strict quality of care standards, and patient-centered service, and we expect to continue to see our success measured by patient outcomes and overall satisfaction.”

— Ajay Gupta

[Source(s): Gryphon Investors, PR Newswire]

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